The International Monetary Fund is once again lowering its projections for global economic growth in 2023, projecting world economic growth lower by four trillion dollars (£3.5 trillion) through to 2026.
Kristalina Georgieva, managing director of the IMF, told an audience at Georgetown University in Washington DC on Thursday that “things are more likely to get worse before it gets better” saying the Russian invasion of Ukraine that began in February has dramatically changed the IMF’s outlook on the economy.
Many countries are already experiencing significant economic consequences as a result of the war.
Ms. Georgieva said the institution downgraded its global growth projections already three times, to 3.2% for 2022 and now 2.9% for 2023.
The risks of recession are increasing, she said, adding that the IMF expects at least two consecutive quarters of economic decline in countries accounting for one-third of the global economy this or next year.