The outlook for the world economy has “darkened dramatically,” according to Kristalina Georgieva, chief of the International Monetary Fund (IMF), since April 2022.
Given the increased dangers, Kristalina told Reuters that a worldwide recession could not be ruled out for the upcoming year.
The IMF director predicted that “it’s going to be a tough ’22, but maybe even a tougher 2023.”
She listed several issues influencing the world economy, including the spread of inflation globally, sharp increases in interest rates by central banks, a slowdown in China‘s GDP, and unheard-of sanctions against Russia.
Kristalina Georgieva predicted that the IMF would lower its prior forecast of 3.6 percent global growth for this year in the upcoming weeks. That would mark the third time this year that the fund had to lower its prediction.
Georgieva remarked that the global economic picture would be complicated by a longer-lasting tightening of financial conditions, adding, “We are in choppy waters.”
She urged regulating skyrocketing costs as a necessary first step.