IMF warns of darkening global economic outlook

IMF Managing Director Kristalina Georgieva calls on G20 countries to do everything to mitigate the effects of this crisis on the economies of poor countries.

© Brendan Smialowski AFP/File

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Faced with the war in Ukraine and soaring prices worldwide, the IMF plans in the coming weeks to lower global growth forecasts for the second time since the beginning of the year.

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The finance ministers of the G20 countries who meet on Friday in sunny Bali now know that the skies will be dark.

In a note written for them, IMF Managing Director Kristalina Georgieva left little doubt about the global economic climate: she will revise the growth forecasts for 2022 and 2023 downwards in the coming days.

This is the second revision in less than six months, because the risks anticipated at the start of the year have materialized, deplores Kristalina Georgieva.

Inflation

to rise, it now goes beyond the food and energy sectors alone to reach other areas.

This unabated inflation could inflame social tensions, warns the IMF.

A situation that should get worse for the poorest countries

The weapon of central banks to contain inflation, namely the rise in interest rates, has been widely used: 75 central banks in the world have increased their rates by an average of 3%.

A shower that will eventually calm the rise in prices, but which should increase

.

Krisatlina Georgieva could have quoted Eugene Ioneco – “ 

 ” –, she preferred to end her note with a Balinese proverb in the form of a call for solidarity: “ 

”.    

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