According to IMF chief Kristalina Georgiewa, a global recession is not in sight. The global economic growth of 3.6 percent forecast by the International Monetary Fund is far from a recession, Georgieva said on Monday at the annual meeting of the World Economic Forum in Davos, Switzerland.
But she added: “What we could see is a recession in some countries that are weak to begin with.” This applies, for example, to countries that have not yet recovered from the Corona crisis and that are highly dependent on energy and food imports from Russia. Georgieva stressed that overall 2022 would be a “hard year” due to several crises.
In a video statement on Twitter at the beginning of the conference, Georgieva warned that the situation was very challenging: the war in Ukraine and the pandemic would have major economic consequences and lead to lower growth and rising inflation. At the same time, long-term challenges such as the climate crisis have not disappeared.
According to the IMF forecast, the global economy will grow much more slowly this year because of the war in Ukraine. At the same time, the IMF expects a higher inflation rate in 2022, driven by energy and food prices. According to the forecast published in April, the fund expects growth of 3.6 percent – 0.8 points less than assumed in January.