International Monetary Fund (IMF) head Kristalina Georgiewa said the outlook for the global economy “has deteriorated significantly” since April. In her opinion, a global recession in 2023 cannot be ruled out.
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Kristalina Georgiewa told Reuters the IMF will lower the global forecast for gross domestic product (GDP) growth in 2022 for the third time this year in the coming weeks. The April forecast assumed economic growth of 3.6 percent. Georgieva said IMF economists are still finalizing their new estimates.
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Forecasts for the world economy
The fund is expected to publish its updated forecast for 2022 and 2023 at the end of July, and in April it lowered its forecast by almost a full percentage point. In 2021, the world economy grew by 6.1 percent.
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“The outlook has dimmed significantly since our last update in April,” Georgiewa told the Reuters Agency. At the same time, she noted the spread inflationsignificant interest rate increasesslowing economic growth Chin and escalation of sanctions related to the Russian invasion of Ukraine.
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– We are in very rough waters – said the head of the IMF. When asked if she could rule out a global recession, she replied: “The risk has increased so we can’t rule it out.” – It will be a difficult 2022, but maybe even more difficult 2023 – said Kristalina Georgiewa. – The risk of a recession in 2023 has increased – added the head of the IMF.
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