Economics
Global Economy Could Lose $4 Trillion in Output, IMF Chief Warns
- Economic shocks could persist amid uncertainty, Georgieva says
- Policymakers need to ‘stay the course’ on inflation: IMF head
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The global economy is at increasing risk of recession and it could lose $4 trillion in output through 2026, a “massive setback” roughly equivalent to the size of Germany’s economy, the International Monetary Fund’s top official said.
The situation is “more likely to get worse than to get better,” Managing Director Kristalina Georgieva said in prepared remarks for an IMF event Thursday in Washington. She cited uncertainty that remains “extremely high” after Russia’s invasion of Ukraine and the pandemic, and warned that “there could be even more economic shocks.”