The world economy is currently facing many challenges that are still rooted in the time of the covid crisis. When the economy seemed to be on its feet, war broke out in Ukraine, which exacerbated some of the risks.
“No, it’s not threatening now. But that doesn’t mean it’s out of the question, “International Monetary Fund chief Kristalina Georgieva said when asked if she expected the world economy to be on the verge of recession. The question was raised during a discussion by global economic leaders at the World Economic Forum in Davos, Switzerland.
The war in ukraine has deepened the crisis
According to Georgieva, the global economic outlook has “darkened” after the war broke out in Ukraine and the coronavirus epidemic picked up again in China. Georgiev in Davos reminded that the world is facing high price increases or the risk of a food crisis, which also has resources in the Russian-Ukrainian war conflict.
Economic growth should not stall
That is why the International Monetary Fund recently worsened the global economic outlook for the rest of this year. However, despite increased risks, economic growth in the world economy should remain positive.