International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday that the outlook for the global economy "has become significantly darker" since April, and that she could not rule out a possible global recession next year in light of heightened risks.
The managing director told Reuters that in the coming weeks the fund will cut its 2022 forecast for global economic growth of 3.6% for the third time this year, adding that IMF economists are still finalizing the new figures.
The IMF is expected to release its updated forecasts for 2022 and 2023 in late July, after cutting its forecast by about a full percentage point in April. The global economy expanded by 6.1% in 2021.
"The outlook since our last update in April has become significantly bleak," she told Reuters in an interview, citing a larger global spread of inflation, further large interest rate increases, slowing economic growth in China, and escalating sanctions related to Russia's war in Ukraine.
“We are in very choppy waters. The risks have gone up, and global recession can't be rule them out," she said, adding that recession risks increase in 2023.
She concluded that recent economic data showed that some large economies, including those of China and Russia, contracted in the second quarter.
Follow the latest news on Google News
