Photo: DURSUN AYDEMIR/AA/PICTURE ALLIANCE / Deutsche Welle
“The horizon has darkened” for the world economy, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said on Monday at a conference in Davos, although she ruled out the risk of a recession .
“It will be a difficult year”, he warned in a debate on the world’s economic prospects, when the consequences of the war in Ukraine are still uncertain.
“We are experiencing a shock in the prices of basic products, in particular food”, which are shooting up to an unprecedented level, he affirmed.
In April, the Washington-based institution lowered its forecast for global growth to 3.6% this year due to the “seismic waves” of the war in the economy, which represents a decrease of 0.8 percentage points from previous forecasts.
Effects of the war could be aggravated
From those pre visions, “the horizon has darkened” and the war has been compounded by the economic consequences of the confinements in China, as well as the tightening of monetary policy in many countries –including the United States– in the face of high inflation.
The effects of the war could be further aggravated, and fears of a global recession are beginning to surface among a growing number of economic observers.
However, responding to a question about the risks of a recession in the developed world, Georgieva said on Monday that it is not on the horizon “for the time being”.