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IMF chief says ‘unstoppable’ global recession is possible – SABC News

The head of the International Monetary Fund (IMF) on Wednesday said global economic prospects have been ‘too dark’ since April and could not avoid global reimbursement next year due to high risk.

IMF Managing Director Kristalina Georgieva told Reuters that the figure will come down in the coming weeks of 2022 forecast for global economic growth of 3.6% three times this year, adding that experts about the IMF economy is still finalizing the new rate.

The IMF is expected to release its updated forecast for 2022 and 2023 by the end of July, having cut its forecast to almost full percentage in April.

The global economy grew by 6.1% in 2021.

He told Reuters in an interview, referring to the expansion of global inflation, high interest rates, a decline in China’s economic growth, and an increase in restrictions related to the Russian war. Ukraine.

He said: “We are in a quagmire.

Asked if he would eliminate the global financial recession, he said, “The risk has risen because we cannot eliminate it.”

Recent economic data showed some major economies, including those of China and Russia, have entered the second quarter, he said, declaring that the threat is higher than in 2023.

“It will be a tough ’22, but maybe 2023 will be more difficult,” he said. “The threat of recession increases in 2023.”

Entrepreneurs are increasingly worried about the risk of recession, as well as a major part of the U.S. stock market turning for a second straight day on Wednesday, in what is a sign that the recession is coming.

Federal Reserve Chairman Jerome Powell last month said the U.S. Federal Reserve was not trying to impose a bailout, but was working hard to bring prices under control even if doing so had a major economic downturn.

Georgieva said sustained economic conditions will challenge world economic perceptions, but added that it is necessary to achieve rising prices.

The global outlook is different now than just two years ago, energy exporters, including the United States, are in a better position, while importers are struggling, he said.

A slower economic growth could be a “significant cost to pay” given the urgent need and the need to restore price stability, he said.

Georgieva pointed to the increasing risk of discrepancies between the budget and financial forecasts, and urged countries to carefully address those practices to prevent any possibility of financial support and undermines efforts by the central bank to control inflation.

He said, “We need to create a strong level playing field between the central bank and the financial sector so that they provide support in a targeted manner… and do not undermine what the monetary policy seeks to achieve,” he said.

IMF chief says ‘unstoppable’ global recession is possible – SABC News

Source link IMF chief says ‘unstoppable’ global recession is possible – SABC News

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