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Monday, Aug 31, 2026

IMF sounds global economic alarm

IMF sounds global economic alarm

Worldwide recession cannot be ruled out, institution warns
The head of the International Monetary Fund (IMF), Kristalina Georgieva, said on Wednesday that the outlook for the global economy had “darkened significantly” since April. She told Reuters that a global recession next year could not be ruled out, given the elevated risks.

“It’s going to be a tough ’22, but maybe even a tougher 2023,” the IMF boss warned.

She cited the global spread of inflation, dramatic interest rate hikes by central banks, a slowdown in China’s growth and unprecedented sanctions against Russia among the factors affecting global economies.

Georgieva indicated that in the coming weeks the IMF would downgrade its earlier projection of 3.6% global growth for this year. That would be the fund’s third downward revision of its forecast this year.

“We are in choppy waters,” Georgieva stated, noting that longer-lasting tightening of financial conditions would complicate the global economic outlook. She stressed it was crucial to get soaring prices under control.
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