Mischievous statement by Kristalina Georgieva about the world economy.
“The horizon has darkened”, The head of the International Monetary Fund warned on Monday during a conference in Davos, but ruled out a risk of a global recession.
Political and business leaders gathered at the World Economic Forum (WEF) are meeting amid inflation at the highest generation level in major economies, including the US, Britain and Europe.
“The year will be difficult,” the IMF chief said during the debate on the global economic outlook and the current state of consequences of the war in Ukraine it is very uncertain.
“We are experiencing a shock in the price of raw materials and especially in the prices of foodstuffs “which are experiencing a historical increase, said Georgieva.
The Washington-based international economic body cut its global growth forecast to 3.6% in April this year (-0.8 points from previous forecasts) due to the “seismic waves” of war in the economy.
Since these forecasts were made, the “horizon has darkened” and the war has added to the economic consequences of the restrictions in China as well as the tighter monetary policy in many countries, such as the United States, in the face of high inflation.
The consequences of war can to deteriorate further, and the fear of a global recession is beginning to develop among a growing number of economic observers.
In a report released today, the Organization for Economic Co-operation and Development (OECD), which includes all developed countries, says the G7 countries saw their first-quarter growth decline by 0.1% on a quarterly basis. .
A recession is not on the horizon “at the moment but this does not mean that there is no case “Georgieva said today, answering a question about the risks of recession in developed countries.
Regarding the risks of a global recession, the head of the IMF did not rule them out, while stating that “we will see recessions in some countries that did not recover from the Covid crisis, are heavily dependent on Russia or food imports and already show weaknesses “.
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