The Director of the International Monetary Fund, Kristalina Georgieva, warned that the outlook for the global economy has "worsened greatly" since last April, noting that the possibility of a global recession next year cannot be ruled out in light of the huge risks that exist.
Georgieva pointed out that "the fund will reduce in the coming weeks its forecast for 3.6 percent growth in the global economy for the third time this year."
The International Monetary Fund is expected to publish its updated forecasts for 2022 and 2023 in late July, after trimming its forecast by nearly 1 percent in April. While the global economy had achieved a growth rate in 2021 of 6.1 percent.
Georgieva stressed that "the outlook since the last update in April has become significantly bleak." Noting "greater spread of global inflation, more significant increases in interest rates, slowing economic growth in China, and escalating sanctions related to the Russian war in Ukraine," she explained that "recent economic data showed that some large economies, including the economies of China and Russia, contracted in the second quarter, and in this sense, the risks may be higher in 2023, while 2022 will be difficult, but 2023 may be more difficult." And the risks of a recession will increase in 2023.”
Source (Al-Arabiya.net Website, Edited)
