Global Recession: IMF Chief Said Recession May Hit Next-year

Global Recession: IMF Chief’s warning – recession may hit next year, the danger is not averted.

International Monetary Fund (IMF) Chief Kristalina Georgieva has said that the possibility of a possible global recession next year cannot be ruled out.

She said the risk of recession for all the world’s economies has deepened “significantly” since April, raising fears of a possible global recession and posing a major threat to all of the world’s economies.

IMF Managing Director Kristalina Georgieva told the media that in the coming weeks, the IMF will revise its forecast of economic growth to 3.6 percent in 2022 and lower it for the third time this year.

She said that the IMF economists are finalizing the new figures for the global growth rate and it will be finalized soon. The IMF is expected to release its updated forecast for 2022 and 2023 at the end of July.

Let us inform you that in the month of April, the IMF cut its forecast by one percentage point. The growth rate of the global economy was 6.1 percent in 2021.

The world is in deep trouble.

“Since the last update in April, the situation has become much more serious, and our approach has deepened since then,” Kristalina Georgieva said in an interview with a leading news agency.

Citing rising worldwide inflation, rising interest rates, slowing China’s economic growth, and sanctions imposed on Russia after the Russo-Ukraine war, she said we are all in deep trouble.

Things may get worse in 2023.

Recent economic data showed that some large economies, including China and Russia, saw declines in the second quarter. She said that 2002 is difficult for us, but such risks will deepen even more in 2023.

RBI Action: Amidst speculations of global recession, rules for bringing foreign exchange have been eased, why is RBI worried.

The RBI has eased the rules for bringing foreign exchange into the country amid speculations of a depreciating rupee against the dollar.

The rising trade deficit in the country (more on imports than exports), and speculations of a global slowdown.

The central bank has indicated for the first time that FIIs are likely to withdraw money in this regard by taking five important steps in this regard and this could further depreciate the rupee.