The International Monetary Fund (IMF) will next week lower its forecast for global growth to 2.9 percent in 2023, CEO Kristalina Georgieva said on Thursday. Georgieva in particular emphasized the risks of recession and financial instability.
Georgieva said the outlook for the global economy had darkened given the shock caused by the pandemic, Russia’s invasion of Ukraine, as well as climate disasters on several continents.
– We are undergoing a fundamental shift in the global economy, from a relatively predictable world to a more fragile world with greater uncertainty, higher economic volatility, geopolitical confrontation and more frequent and more catastrophic natural disasters, he said in his speech at Georgetown University.
Adjusting down
Georgieva said all of the world’s largest economies – Europe, China and the US – had now slowed, reducing demand for exports from developing and emerging economies, which have been hit hard by high food and energy prices.
The IMF will lower its 2023 growth forecast from 2.9 percent – its fourth downward revision this year. The IMF, on the other hand, will leave its current 3.2 percent growth forecast in 2022 unchanged. How many percentage points the IMF will reduce growth forecasts is not yet known.
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