Global economic outlook ‘darkened significantly’ — Global recession cannot be ruled out – Economics Bitcoin News

Global economic outlook ‘darkened significantly’ — Global recession cannot be ruled out – Economics Bitcoin News

This was warned by the head of the International Monetary Fund (IMF), Kristalina Georgieva the global economic outlook “has darkened significantly”, stressing that, as for a global recession, “we cannot rule it out”.

IMF says global economic outlook has “darkened significantly”

Kristalina Georgieva, managing director of the International Monetary Fund (IMF), discussed the global economic outlook and the prospect of a global recession in an interview with Reuters on Wednesday.

Commenting on the global economy, the Director General of the IMF said:

The outlook has darkened considerably since our last update in April.

She cited several factors, including a more universal spread of inflation, a significant increase in interest rates, a slowdown in China’s economic growth and increasing sanctions related to the Russia-Ukraine war.

In April, the IMF cut its forecast for global growth from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023. That was “0.8 and 0.2 percentage points lower for 2022 and 2023 than which was projected in January,” the Fund noted at the time.

The IMF will further reduce its global growth forecast at the end of this month, Georgieva noted, adding that it will be the third reduction this year.

A global recession cannot be ruled out

When asked about the prospects of a global recession, the Director General of the IMF said:

The risk has increased so we cannot rule it out.

“We are in very choppy waters,” she continued. Investors are becoming increasingly concerned about the risk of a recession.

Georgieva noted that recent economic data showed that some major economies, including China and Russia, contracted in the second quarter. She warned that the risks were even greater in 2023.

The head of the IMF said:

It will be a tough ’22, but maybe even tougher in 2023… Recession risks have increased in 2023.

Georgieva believes that slower economic growth could be “the price that is necessary”, citing the urgent and urgent need to restore price stability.

She is of the opinion: “We need to create the same strong level of coordination between central banks and finance ministries so that they provide support in a very targeted way… and not weaken what monetary policy aims to achieve.”

In June, World Bank President David Malpass warned about a possible global recession. “For many countries, a recession will be difficult to avoid… This is the sharpest slowdown in 80 years,” he said.

What do you think about the comments of IMF Director General Kristalina Georgieva? Let us know in the comments section below.

Global economic outlook ‘darkened significantly’ — Global recession cannot be ruled out – Economics Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

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