China News Agency, Washington, October 6 (Reporter Sha Hanting) International Monetary Fund (IMF) President Georgieva said in Washington on the 6th local time that the current risk of global economic recession is increasing, and the IMF will reduce Global economic growth forecast for next year.
Georgieva delivered the opening speech of the IMF's autumn annual meeting at Georgetown University on the same day.
She said the world has suffered "multiple shocks" in the past three years, including the new crown epidemic, the conflict in Russia and Ukraine, and meteorological disasters. These shocks have caused casualties and pushed up global prices, especially food and energy prices.
Georgieva said the global economy was shifting from the "relatively predictable world" of the past to a "more fragile one."
In the update of the "World Economic Outlook Report" released in July this year, the IMF lowered its forecast for world economic growth in 2022 and 2023 to 3.2% and 2.9% respectively.
Georgieva said on the same day that due to the impact of the Russian-Ukrainian conflict, the new crown epidemic, inflation, and supply chain issues, the IMF will once again lower its forecast for global economic growth in 2023 in the "World Economic Outlook Report" updated next week.
Georgieva also said that the current risk of a global recession is increasing.
The IMF expects the country, which accounts for about one-third of the global economy, to experience two consecutive quarters of economic decline this year or next.
Even in countries with positive economic growth, people can "feel like a recession" due to higher prices and lower real incomes.
The IMF projects that between now and 2026, the loss of global output will reach about $4 trillion, equivalent to the size of the entire German economy.
Faced with the current situation, Georgieva pointed out that the first task is to curb inflation.
Inadequate tightening of monetary policy will cause inflation to become more stubborn and more difficult to address, causing more damage to economic growth and well-being.
Second, develop a responsible fiscal policy that protects vulnerable groups while avoiding fueling inflation.
Third, jointly support emerging markets and developing economies.
Georgieva stressed that the current challenges facing the world, such as food security and climate change, can only be solved by the joint efforts of all countries.
The IMF and World Bank fall annual meetings will be held in Washington from the 10th to the 16th of this month.