The International Monetary Fund Head, Kritalina Georgiava has recently pointed out that the outlook of the global economy is “significantly darker” for the upcoming years. The world may face increasing risks of global recession in the next 12 months which is a matter of grave concern.
The commodity price shocks and supply disruptions due to the ongoing pandemic and Ukraine-Russia crisis has disturbed the global market. She remarked that the situation is “only getting worse.” There is barely any sign of improvement in the near future.
Signs of increasing risk of global recession:
The International Monetary Fund Head, Kritalina Georgiava accentured that inflation is skyrocketing and higher than the projected levels. The latest figures on Wednesday indicated that consumer prices rose to a new high of 9.1 percent in the United States for the first time in forty years.
The consumer prices are also troubling the common man. It is feared that women will be worst affected by this gruesome situation due to job cuts.
Central Banks around every nook and corner of the world have raised their base rates due to the surging inflation. The US Federal Reserve is expected to increase its rate by a historic 1 percent when it meets after two weeks. The Bank of Canada made an announcement to raise its base rate by a full percentage rate. This move is to the dismay and shock of global markets.
The International Monetary Fund will soon lower the growth forecasts of 2022 and 2024. Kristalina Fears that 2024 could be “even tougher.” The growth forecast rate of 3.6 percent will be soon revised downwards.
The near future seems dark and hazy. The lockdowns in China due to COVID-19 and poor supplies will slow down the growth of the patchy economy already suffering the wrath of uncertainty due to coronavirus.
