During a speech at Georgetown University in Washington DC, Georgieva announced that the IMF will lower its growth expectations again on Tuesday. This is not the first time. “We have already reduced our growth forecast three times, to just 3.2% for 2022 and 2.9% for 2023,” the IMF chief said. “And as you will see in our updated World Economic Outlook (WEO) next week, we will reduce growth for next year.”
As a result, the risk of a recession has increased dramatically everywhere. “We estimate that countries that account for around a third of the global economy will experience at least two consecutive quarters of contraction this year or next,” said Georgieva.
Georgieva has witnessed a series of economic shocks since the crown pandemic. The pandemic ushered in “a fundamental turning point for the global economy,” said the Bulgarian. In doing so, we have moved from “a relatively predictable world” to a world characterized by “shock and greater uncertainty”.
In his speech, the CEO highlighted, among other things, the consequences of rising interest rates and high inflation. The latter cannot be seen in isolation from the war in Ukraine, the numerous sanctions that have been imposed on Russia and the uncertainty over gas supplies from that country.
