‘2023 may be even tougher,’ IMF chief says

GBNews24 Desk//

International Monetary Fund chief Kristalina Georgieva has some bad news for the global economy.

Ms Georgieva writes in her latest blog, “Facing a Darkening Economic Outlook: How the G20 Can Respond,” that it’s “going to be a tough 2022 — and possibly an even tougher 2023”, reports ndtv.

Already reeling under the twin blows of the Covid pandemic and the Ukraine-Russia war, the global economy faces an increased risk of recession, she adds.

Taming Inflation Monster

A major concern for Georgieva remains the high global inflation, accelerated by the war in Ukraine and the consequent economic aftershocks.

The IMF, in its April 2022 Economic Outlook, expected “already-elevated inflation to persist for longer”. As per the projections, inflation in advanced economies is projected at 5.7 per cent in 2022, while emerging economies will see inflation rise to 8.7 per cent.

Fearing that a high inflation rate could sink post-Covid global economic recovery, Georgieva has urged countries to “do everything in their power” to bring it down. Central banks continuing to tighten their monetary policy – hiking interest rates – decisively is one way out, she notes.

Since July 2021, her blog notes, 75 central banks have raised interest rates an average of 3.8 times. Georgieva’s message is clear – “acting now will hurt less than acting later”.