Speaking at Georgetown University’s School of Foreign Service, International Monetary Fund (IMF) Chief Kristalina Georgieva on Friday said, “We are experiencing a fundamental shift in the world economy from one of relative predictability with the rules-based framework on international economic cooperation.”
“Very low-interest rates, low inflation to a world with more fragility, greater uncertainty, higher economic volatility, geopolitical confrontations, and more frequent and devastating natural disasters. A world in which any country can be thrown off course more easily and more often,” she said.
Further speaking on the developments, Georgieva said, “We have downgraded our growth projections three times already, to only 3.2 percent for 2022 and 2.9 percent for 2023. And as you will see in our updated World Economic Outlook next week, we will downgrade growth for next year.”
“We will flag that the risks of recession are rising. We estimate that countries accounting for about one-third of the world economy will experience at least two consecutive quarters of contraction this or next year. And, even when growth is positive, it will feel like a recession because of shrinking real incomes and rising prices,” she added.