I.M.F. Warns That a Global Recession Could Soon Be at Hand

The International Monetary Fund warned on Tuesday that the world could soon be on the brink of a global recession as economic slowdowns in the United States, Europe and China along with twin food and energy crises weighed heavily on growth.

In an update of the World Economic Outlook, the I.M.F. said economic prospects had darkened significantly in recent months as war in Ukraine, inflation and a resurgent pandemic inflicted pain on every continent. If the thicket of threats continues to intensify, the world economy faces one of its weakest years since 1970, a period of intense stagflation across the globe.

“The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote in a blog post accompanying the report. Put simply, the outlook for the global economy is “increasingly gloomy,” he wrote.

Article source: https://www.nytimes.com/2022/07/26/business/imf-world-economy.html