International Monetary Fund Managing Director Kristalina Georgieva announced that she does not rule out the possibility of a global recession next year, as the global economic outlook has worsened significantly since last April.
According to Arabiya Net, Georgieva said that in the coming weeks, the fund will lower its forecast for 3.6% growth in the global economy for the third time this year, pointing out that the fund's economists They are still preparing the final new proportions. As reported by Reuters.
The International Monetary Fund is expected to publish its updated forecasts for 2022 and 2023 in late July, having trimmed its forecast by nearly 1% in April.
The global economy achieved a growth rate of 6.1% in 2021.
Georgieva added that the outlook since our last update in April has become significantly bleak, pointing to a larger spread of inflation globally, and further significant increases in interest rates, Slowing economic growth in China, and escalating sanctions related to the Russian war in Ukraine.
We are in choppy waves.
Asked if she could rule out a global recession, Georgieva emphasized that the risks were increasing so we couldn't rule it out.
She said that recent economic data showed that some large economies, including those of China and Russia, contracted in the second quarter, noting that risks may be higher in the coming quarter. year 2023.
She added: 2022 will be difficult, but 2023 may be more difficult, and the risks of recession increase in 2023.
Fed Chairman Jerome Powell announced last month that the US central bank is not trying to engineer a recession, but is fully committed to controlling prices even if it leads to a recession. The risk of an economic downturn.
Georgieva noted that a longer period of fiscal tightening would further complicate the outlook for the global economy, but added that it was necessary to control price increases.
