10/10/2022, 3:03 PM (Source: TeleTrader)
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IMF, World Bank warn of heightened recession risk

World Bank Group President David Malpass warned of increased risk and "real danger" of a global recession at a meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday. Meanwhile, the IMF projected that around one-third of the world economy will see at least two consecutive quarters of negative growth in 2022 and 2023, with the total amount "wiped out" by the slowdown equivalent to $4 trillion between 2022 and 2026.

Georgieva stated that the world "cannot afford inflation to be a runaway train" and advocated "strong action," although she acknowledged that too much tightening will contribute to recession risks. "Some support is necessary, but that support has to be well-targeted because if it is not, we are adding fuel to the flames of inflation," she noted.

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