IMF predicts loss of 4 trillion dollar loss for global economy by 2026
The global economy is moving from a state of relative projections to a state of greater uncertainty. IMF Chief Kristalina Georgieva has said that many countries, which account for about a third of the world economy, could see a period of economic contraction for two consecutive quarters this year or next year. In a key policy address ahead of the annual meeting of the International Monetary Fund (IMF) and the World Bank here, IMF Managing Director Georgieva said on Thursday that the World Economic Outlook to be released next week will further lower global growth projections.
‘We have already reduced our growth projections three times to just 3.2 per cent for 2022 and 2.9 per cent for 2023’, she said. ‘And as you’ll see in our updated World Economic Outlook next week, we will further cut growth projections for next year.’
We will flag that recession risks are increasing, she said. ‘We estimate that countries that account for about one-third of the world economy will experience contraction for at least two consecutive quarters this or next year. ‘Despite growth being positive, falling real incomes and rising prices would lead to a slowdown in such a situation.
Georgieva said that between the present time and the year 2026, we expect a total loss of 4 trillion US dollars in global production. This is similar in size to the German economy and is a major blow to the economy. It is more likely to get worse than it gets better.
