The International Monetary Fund (IMF) will significantly lower its forecast for global economic growth, said Seyla Pazarbasioglu, director of the International Monetary Fund’s Department of Strategy, Policy and Monitoring, in a panel discussion Sunday at the G20 summit in Bali. Indonesia.
“The shock comes after the shock in the global economy,” Pazarbasioglu warned. Bloomberg According to his report, he stressed that the skyrocketing food and energy prices, the fall in capital coming into emerging markets, the coronavirus epidemic, and the slowdown in the Chinese economy, also represent a major challenge for policymakers.
Thus, “we will further exacerbate our expectations significantly,” the IMF official said at the review scheduled for July.
In its latest report in April, the organization cut its global GDP growth forecast for this year from 4.4 to 3.6 percent, citing rising inflation risks and central bank tightening.
In his remarks on Sunday, Pazarbasioglu essentially reiterated the concerns expressed by IMF chief Kristalina Georgieva in her blog a few days ago, in which she also forecast a decline in growth prospects.
According to him, 2022 will be difficult, the following year may be even more difficult, and a recession is unimaginable. He also outlined a three-point solution proposal for the leaders of the G20 countries. The essence of this is that everything must be done to curb inflation, fiscal policy must help central banks, and a new impetus for global cooperation is needed.
