World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday, October 10th, of a growing risk of global recession and said inflation remained a continuing problem after Russia’s invasion of Ukraine.
“There’s a risk and real danger of a world recession next year,” Malpass said in a dialogue with Georgieva at the start of the first in-person meetings of the two institutions since the Covid-19 pandemic.
The IMF chief last week said the global lender would downgrade its forecast for 2.9% global growth in 2023 when it releases its World Economic Outlook on Tuesday, citing the shocks caused by the Covid-19 pandemic, Russia’s invasion of Ukraine and climate disasters on all continents.
Georgieva, the first IMF chief from an emerging market economy, said advanced economies needed to “get the big, scary danger of debt crisis under control” because it would affect all countries, not just those with high debt burdens.
Georgieva said the world needed a staggering $3 to $6 trillion to address climate change and it was essential to increase collaboration with the private sector and leverage funds “on scale” to help meet the needs.