Please ensure Javascript is enabled for purposes of website accessibility
IMF Warns of Higher Recession Risk and Darker Global Outlook
gvw_ap_news
By Associated Press
Published 3 years ago on
October 6, 2022

Share

 

The International Monetary Fund is once again lowering its projections for global economic growth in 2023, projecting world economic growth lower by $4 trillion through 2026.

Kristalina Georgieva, managing director of the IMF, told an audience at Georgetown University on Thursday that “things are more likely to get worse before it gets better,” saying the Russian invasion of Ukraine that began in February has dramatically changed the IMF’s outlook on the economy.

The ongoing COVID-19 pandemic, rising inflation and worsening climate conditions are also impacting world economies, exacerbating other crises, like food insecurity and high debt levels held by lower-income countries.

“The risks of recession are rising,” she said, adding that the IMF estimates that countries making up one-third of the world economy will see at least two consecutive quarters of economic contraction this or next year.

Georgieva said the institution downgraded its global growth projections already three times. It now expects 3.2% for 2022 and now 2.9% for 2023.

The bleak projections come as central banks around the world raise interest rates in hopes of taming rising inflation. The U.S. Federal Reserve has been the most aggressive in using interest rate hikes as an inflation-cooling tool, though central banks from Asia to England have begun to raise rates this week.

Georgieva said “tightening monetary policy too much and too fast — and doing so in a synchronized manner across countries — could push many economies into prolonged recession.”

Many countries are already seeing major impacts of the invasion of Ukraine on their economies, and the IMF’s grim projections are in line with other forecasts for declines in growth.

The Organization for Economic Cooperation and Development last week said the global economy is set to lose $2.8 trillion in output in 2023 because of the war.

The projections come after the OPEC+ alliance of oil-exporting countries decided Wednesday to sharply cut production to support sagging oil prices in a move that could deal the struggling global economy another blow and raise politically sensitive pump prices for U.S. drivers just ahead of key national elections in November.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Advisory Warns of ‘Heightened Threat Environment’ in US After Iran Strikes

DON'T MISS

Muslim Countries to Set up Contact Group to Seek Israel-Iran De-Escalation

DON'T MISS

Visalia Police Seek Public’s Help in Sexual Assault Investigation

DON'T MISS

Despite Clashes With US Presidents, Israel’s Netanyahu Usually Gets His Way

DON'T MISS

Pope Leo Urges International Diplomacy to Prevent ‘Irreparable Abyss’

DON'T MISS

Oil to Open Higher as US Strikes on Iran Boost Supply Risk Premium

DON'T MISS

US Strikes Against Iran Not Aimed at Regime Change, Pentagon Chief Says

DON'T MISS

US Bombing of Iran Started With a Fake-Out

DON'T MISS

Pakistan Condemns Trump’s Bombing of Iran a Day After Nominating Him for Peace Prize

DON'T MISS

World Awaits Iran’s Response After Trump Says US ‘Obliterates’ Nuclear Sites

UP NEXT

Despite Clashes With US Presidents, Israel’s Netanyahu Usually Gets His Way

UP NEXT

Pope Leo Urges International Diplomacy to Prevent ‘Irreparable Abyss’

UP NEXT

Oil to Open Higher as US Strikes on Iran Boost Supply Risk Premium

UP NEXT

US Strikes Against Iran Not Aimed at Regime Change, Pentagon Chief Says

UP NEXT

US Bombing of Iran Started With a Fake-Out

UP NEXT

Pakistan Condemns Trump’s Bombing of Iran a Day After Nominating Him for Peace Prize

UP NEXT

World Awaits Iran’s Response After Trump Says US ‘Obliterates’ Nuclear Sites

UP NEXT

World Leaders React to US Attack on Iran

UP NEXT

Investors Brace for Oil Price Spike, Rush to Havens After US Bombs Iran Nuclear Sites

UP NEXT

Investors React to US Attack on Iran Nuclear Sites

Despite Clashes With US Presidents, Israel’s Netanyahu Usually Gets His Way

19 hours ago

Pope Leo Urges International Diplomacy to Prevent ‘Irreparable Abyss’

19 hours ago

Oil to Open Higher as US Strikes on Iran Boost Supply Risk Premium

19 hours ago

US Strikes Against Iran Not Aimed at Regime Change, Pentagon Chief Says

19 hours ago

US Bombing of Iran Started With a Fake-Out

19 hours ago

Pakistan Condemns Trump’s Bombing of Iran a Day After Nominating Him for Peace Prize

19 hours ago

World Awaits Iran’s Response After Trump Says US ‘Obliterates’ Nuclear Sites

19 hours ago

Mariska Hargitay Comes to Terms With a Lifetime of Family Secrets

20 hours ago

Mysterious Ancient Humans Now Have a Face

20 hours ago

World Leaders React to US Attack on Iran

1 day ago

Advisory Warns of ‘Heightened Threat Environment’ in US After Iran Strikes

WASHINGTON  -An advisory from the U.S. Department of Homeland Security warned on Sunday of a “heightened threat environment in the Uni...

18 hours ago

A "No war on Iran" banner is held as people attend an anti-war demonstration in Los Angeles, California, U.S., June 21, 2025. (Reuters File)
18 hours ago

Advisory Warns of ‘Heightened Threat Environment’ in US After Iran Strikes

Turkey's President Tayyip Erdogan meets with Iranian Foreign Minister Abbas Araghchi as they are flanked by Turkish Foreign Minister Hakan Fidan and members of Turkish and Iranian delegations, during the 51st Session of the Council of Foreign Ministers of the Organisation of Islamic Cooperation (OIC), in Istanbul, Turkey, June 21, 2025. (Reuters File)
18 hours ago

Muslim Countries to Set up Contact Group to Seek Israel-Iran De-Escalation

18 hours ago

Visalia Police Seek Public’s Help in Sexual Assault Investigation

President Donald Trump speaks as Israeli Prime Minister Benjamin Netanyahu waves following a meeting in the White House, in Washington, U.S., April 7, 2025. (Reuters/Kevin Mohatt)
19 hours ago

Despite Clashes With US Presidents, Israel’s Netanyahu Usually Gets His Way

Pope Leo XIV holds a Jubilee audience on the occasion of the Jubilee of Sport, at St. Peter's Basilica, at the Vatican June 14, 2025. (Reuters File)
19 hours ago

Pope Leo Urges International Diplomacy to Prevent ‘Irreparable Abyss’

An oil tanker is being loaded at Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. (Reuters File)
19 hours ago

Oil to Open Higher as US Strikes on Iran Boost Supply Risk Premium

U.S. Secretary of Defense Pete Hegseth holds a briefing at the Pentagon, after the U.S. struck Iranian nuclear facilities, during the Israel-Iran conflict, in Arlington, Virginia, U.S., June 22, 2025 in this still image taken from handout video. Reuters TV/U.S. Department of Defense/Handout via REUTERS
19 hours ago

US Strikes Against Iran Not Aimed at Regime Change, Pentagon Chief Says

A satellite view shows an overview of Fordow underground complex, after the U.S. struck the underground nuclear facility, near Qom, Iran June 22, 2025. MAXAR TECHNOLOGIES/Handout via REUTERS
19 hours ago

US Bombing of Iran Started With a Fake-Out

Help continue the work that gets you the news that matters most.

Search

Send this to a friend