How will 2023 be after the recession of the year 2022, know what the IMF chief has to say!?

International Monetary Fund (IMF) managing director Kristalina Georgieva told Reuters news agency on Wednesday that the outlook for the global economy has turned “significantly darker” since April and a possible global recession next year cannot be ruled out.

According to the report, Georgieva said that in the coming weeks, the IMF will downgrade its forecast of global economic growth to 3.6 percent for 2022 for the third time this year. He said that the risk of global recession has increased so we cannot rule it out.

After lowering its forecast by almost a full percentage point in April, the IMF is likely to release its updated forecast for 2022 and 2023 in late July. The global economy grew by 6.1 percent in 2021.

(Photo: Xinhua/Liu Jie)

Georgieva said the outlook has deepened significantly since our last update in April, citing a more universal spread of inflation, rising interest rates, a slowdown in China’s economic growth and sanctions related to Russia’s war in Ukraine. Given that the risk is even higher in 2023, the latest economic data shows some large economies, including China and Russia, shrank in the second quarter. It’s going to be a tough ’22, but maybe 2023 will be even tougher. The risk of recession may increase in 2023.

Investors are worrying about bearish risks as the US Treasury yield curve narrowed for the second straight day on Wednesday, which has been a reliable indicator that a recession is underway. Federal Reserve Chairman Jerome Powell said last month that the US central bank was not trying to reverse a recession but was fully committed to bringing prices under control, even if doing so could threaten an economic slowdown. .

Georgieva said a prolonged tightening of financial conditions would complicate the global economic outlook, but added that it was important to bring rising prices under control. He said the global outlook was more skewed than it was just two years ago, with energy exporters, including the US, outperforming while importers were struggling.

(function (d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id))
js = d.createElement(s); = id;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Back to top button