Terrifying declarations for the world economy from the heads of the World Bank and the IMF

While the International Monetary Fund (IMF) and the World Bank expressed concern about the worsening global outlook, they said China’s reopening would help support economic growth.

As China holds talks with the IMF, the World Bank, the OECD, the World Trade Organization and some other institutions every year, the heads of these institutions shared their assessments on the world economic outlook after meetings held in China on previous.

FEARING THE IMF WARNING

IMF Managing Director Kristalina Georgieva said a further decline in global growth seems likely when looking at the indicators.

Speaking after a meeting with Chinese Premier Li Keqiang on Friday, Georgieva said China’s restructuring of its anti-Covid policies would be a good thing for the country’s economy and the rest of the world.

The IMF predicts that global growth will slow to 2.7 percent next year. The institution’s economic growth forecast for this year is 3.2 percent.

WORLD BANK recession concern

The president of the World Bank, David Malpass, also made pessimistic statements about the world outlook.

Malpass said he is deeply concerned that the world is going into recession and that more needs to be done to save the world from stagflation.

Gloomy EXPLANATIONS FROM THE WTO AND THE OECD

World Trade Organization President Ngozi Okonjo-Iweala said world trade faces real challenges and trade growth is losing momentum.

The WTO had forecast that global commodity trade would grow by just 1 percent next year. The organization’s growth forecast for 2022 is 3.5 percent.

Mathias Cormann, Secretary General of the Organization for Economic Co-operation and Development (OECD), said the global economic outlook continues to worsen. Cormann also welcomed China’s relaxation of some Covid rules.