World Bank and IMF see risk of global recession – 10/10/2022 – Market

David Malpass, President and Managing Director of the World BankMI (International Monetary Fund)Kristalina Georgieva said there was a growing risk of a global recession, a persistent problem after inflation. Russia’s invasion of Ukraine.

“There is a risk and a real risk of a global recession next year,” Malpass said in a conversation with Georgieva at the start of the two companies’ first face-to-face meetings since the Covid-19 pandemic.

He cited slow growth in developed economies and currency depreciation in many developing countries.

On Monday, he noted that economic activity was slowing in three major economies: Europe, hit hard by high natural gas prices; Real estate volatility in China And problems caused by Covid-19 slow growth; And America, where Interest rate increases “starting to work”.

Slow growth in advanced economies, interest rates, climate risks and High food prices And energy hits developing countries particularly hard, with both leaders calling for joint action to help emerging markets.

“It’s not an optimistic picture. But if we come together, if we work together, we can ease the pain ahead of us in 2023,” Georgieva said.

Georgieva said the IMF will argue this week that central banks continue their efforts to control inflation despite the negative impact on growth.

Malpass, who was criticized last month for refusing to say whether he accepted the scientific consensus on global warming, said bank officials were working hard to free up more funds to tackle the climate problems facing many developing countries.