IMF MANAGIN DIRECTOR DOES NOT EXPECT GLOBAL RECESSION

23. May 2022
Photo: reuters.com

International Monetary Fund (IMF) might have to reduce economic growth forecasts this year, but does not expect a global recession, IMF Managing Director Kristalina Georgieva said at the start of the World Economic Forum in Davos, held online for the first time after two years break.

"All of this is making further downgrades not out of the question and for some countries there is now an increased risk of recession, but we do not anticipate a global recession," Georgieva told Bloomberg.

Kristalina Georgieva said at the opening of the World Economic Forum in Davos that Russia’s invasion was “devastating lives, dragging down growth and pushing up inflation”, and urged countries not to “surrender to the forces of geoeconomic fragmentation that will make our world poorer and more dangerous”.

The global economy faces its “biggest test since the Second World War,” Georgieva said. Her warning came alongside with the billion dollars package, which Ukraine dedicated for the reconstruction of the country. Calling for a new Marshall Plan plus for reconstruction, she said that it could be financed from the frozen assets of the Russian state and from oligarchs, according to bloomberg.com.

Despite the IMF's dramatic warning of unprecedented challenges, stock market indices in Europe are rising. The British FTSE 100 strengthened 0.9 percent, the French CAC 40 rose 0.7 percent, while the German DAX added 1.3 percent value on Monday after the stock market opened.

 

Source: bloomberg.com

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