The executive director of the International Monetary Fund is pessimistic about the future of the global economy.
(Photo: dpa)
Washington According to forecasts by the International Monetary Fund (IMF), the global economy is facing its weakest growth since 1990. The global economy is “in an extremely uncertain situation,” according to the current “World Economic Outlook” (WEO), which the organization published on Tuesday .
A so-called “hard landing”, the sudden swing into recession or stagnation, has “become a much greater risk,” especially for industrialized nations. The forecast for Germany in particular is bleak for this year.
Many economies are still busy processing the pandemic, the effects of the Ukraine war and supply shortages. According to the International Monetary Fund, there is also “stubborn” inflation, a tight interest rate policy and high levels of debt.
“Now these problems are being exacerbated by new concerns about financial stability,” the IMF analyses. The turmoil in the banking system would “significantly” increase the risks to growth.
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