I.M.F. warns of global recession
Islam News – The world could soon be on the brink of a global recession as the economies of the U.S., China and Europe slowed more sharply than anticipated, the I.M.F. said in a new report.
It said the probability of a recession starting in one of the Group of 7 advanced economies was now nearly 15 percent, four times its usual level. And it said some indicators suggested that the U.S. was already in a “technical” recession, though most economists didn’t think it yet met the formal definition.
The I.M.F. downgraded its global growth forecasts from its April projections, predicting that output would fall to 3.2 percent in 2022 from 6.1 percent last year. Growth is expected to slow even further next year as central banks around the world raise interest rates in an effort to tame inflation.
“The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote. Put simply, the outlook for the global economy is “increasingly gloomy,” he added.
Related: U.S. Federal Reserve officials are set to make a second abnormally large interest rate increase this week as they race to cool down an overheating economy.
Source: The New York Times