By Andrea Shalal
International Monetary Fund spokesman, Jerry Rice, said today, Thursday, that downside risks still dominate the global economic outlook, and some countries are expected to slip into recession in 2023, but it is too early to say whether there will be a widespread global recession .
Rice told reporters that the high-frequency data suggested a further loss of momentum in the third quarter, given persistent high inflation, supply chain problems and tightening financial market conditions, but she did not elaborate on any further revisions to the IMF’s forecast.
The International Monetary Fund in July revised downward global growth to 3.2% in 2022 and 2.9% in 2023. It will release new forecasts next month.
“It is clear that what we have described as a global economic slowdown has only intensified in recent weeks and months,” Rice said at a virtual news briefing.
He said that the ongoing COVID-19 lockdown and real estate issues are affecting economic activity in China, while the dollar’s rise has had repercussions for many countries.
“Downside risks continue to dominate the outlook with an enormous amount of uncertainty that needs to be taken into account,” he said. “We expect some countries to experience recession in the year 23. It is too early to say whether this will be a global wide recession.”
Even if some countries were not technically in a recession, Rice said, it would be a recession for many people around the world.
He noted that in Africa alone, hunger has risen by a third in the past two years, affecting 123 million people.
“Whatever you want to call it, it’s a horrific situation for these people.”
