The outlook for the global economy has deteriorated significantly since April. It is likely to avoid a recession. This is because of the spreading inflation, the slowdown in major economies and rising interest rates, Kristalina Georgieva told Reuters in an interview.
The International Monetary Fund’s economic experts are said to be finalising a new forecast of global economic developments, which will include up-to-date data. This means, first of all, rising and spreading inflation to more countries, the slowdown of major economies including Russia or China, but also the additional anti-Russian sanctions imposed by the West as a result of the war in Ukraine.
Statement by the IMF Chief
“The outlook for the world economy has darkened considerably,” Goergiev told Reuters. However, she said the world economy is still facing a difficult period in 2023. Georgieva appealed to governments to align their budgetary policies with the monetary policy of central banks so that they are not prevented from achieving their goals.
The most important point is to reduce inflation
The main one is to reduce inflation to an acceptable level. The International Monetary Fund will revise its forecast downwards for the third time this year. Back in April, the IMF predicted that the world economy would grow by 3.6 percent in 2022.
