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The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that <\/strong>the global economic outlook \u201chas darkened significantly,\u201d emphasizing that, regarding a global recession, \u201cwe cannot rule it out.\u201d<\/strong>\n<\/p>\n \n Commenting on the global economy, the IMF managing director said:\n<\/p>\n The outlook since our last update in April has darkened significantly.<\/p>\n<\/blockquote>\n \n In April, the IMF slashed its global growth forecast from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023. This was \u201c0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January,\u201d the Fund noted at the time.<\/p>\n The IMF will be cutting its global growth forecast further late this month, Georgieva noted, adding that it will be the third downgrade this year.\n<\/p>\n \n The risk has gone up so we cannot rule it out.<\/p>\n<\/blockquote>\n \n Georgieva noted that recent economic data showed that some large economies, including those of China and Russia, had contracted in the second quarter. She cautioned that the risks were even higher in 2023.<\/p>\n The IMF boss said:\n<\/p>\n It\u2019s going to be a tough \u201922, but maybe even a tougher 2023 \u2026 Recession risks increased in 2023.<\/p>\n<\/blockquote>\n \nGeorgieva believes that slower economic growth may be a \u201cnecessary price to pay,\u201d citing the urgent and pressing need to restore price stability.<\/p>\n She opined: \u201cWe need to create the same strong level of coordination between central banks and finance ministries so they provide support in a very targeted way \u2026 and don\u2019t weaken what monetary policies are aiming to achieve.\u201d<\/p>\n In June, World Bank President David Malpass warned<\/a> about a possible global recession. \u201cFor many countries, a recession will be hard to avoid \u2026 This is the sharpest slowdown in 80 years,\u201d he said.<\/p>\nIMF Says Global Economic Outlook \u2018Has Darkened Significantly\u2019<\/h2>\n
\nKristalina Georgieva, the managing director of the International Monetary Fund (IMF), discussed the global economic outlook and the prospect of a global recession in an interview with Reuters Wednesday.<\/p>\n\n
\nShe cited several factors, including a more universal spread of inflation, more substantial interest rate hikes, China\u2019s economic growth slowdown, and mounting sanctions related to the Russia-Ukraine war.<\/p>\nGlobal Recession Cannot Be Ruled Out<\/h2>\n
\nWhen asked about the prospect of a global recession, the IMF managing director said:\n<\/p>\n\n
\n\u201cWe are in very choppy waters,\u201d she continued. Investors are becoming increasingly concerned about recession risks.<\/p>\n\n