World Bank President David Malpass and International Monetary Fund (IMF) Managing Director Kristalina Georgieva said there was a growing risk of a global recession.
With inflation rising across much of the world and interest rates rising to curb price increases, the outcome should be a slowdown in growth across much of the world.
“There is a risk and real danger of a global recession next year,” Malpass said in a dialogue with Kristalina earlier in the week. annual meeting between the two institutionsthis Monday the 10th
Malpass cited slowing growth in developed economies and currency devaluation in many developing countries. Kristalina said the IMF sees “a significant problem” in China, the world’s second largest economy, where volatility is hampering growth.
According to the institutions, the world is grappling with the challenges of the pandemic, the war in Ukraine and a global food and energy crisis. “These crises threaten livelihoods and hit the most vulnerable,” the World Bank said in a statement. “Policymakers, international organizations and the private sector urgently need decisive and coordinated action to build resilience during this time of volatility.”