The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, anticipated that the entity will reduce its projection of growth of the world economy in 2023, in its report of global economic perspective, to be released next week.
During a speech at Georgetown University in the US, Georgieva also said that the document will signal that the global risks of recession have increased. According to her, economies that account for at least a third of global activity will face at least two straight quarters of economic contraction between the end of 2022 and the entire year of 2023.
At the same time, the IMF expects that around $4 trillion of global output will be lost between now and 2026. “This is the size of the German economy – a huge setback for the world economy,” Georgieva pointed out.
Finally, the managing director said that the risks to financial stability have also worsened. “Rapid and disorderly asset repricing could be amplified by vulnerabilities including high sovereign debt and liquidity concerns in key segments of the financial market,” she said.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
