IMF director warns of 'fundamental shift' towards uncertainty in global economy

Global output loss of $4tn

The world is experiencing “a fundamental shift in the global economy” as volatility, uncertainty and natural disasters continue to increase, Kristalina Georgieva the International Monetary Fund’s managing director stated.

In a speech given yesterday (6 October), Georgieva described a "darkening outlook", explaining that various economic shocks, from the coronavirus to the Russian invasion of Ukraine, had created persistently high inflation and a cost of living crisis. Georgieva warned that the IMF had downgraded growth projections three times to 3.2% for 2022 and 2.9% for 2023. "As you will see in our updated World Economic Outlook next week, we will downgrade growth for next year," she said. "And we will flag that the risks of recession are rising". IMF warns funds holding illiquid assets risk...