IMF warns global recession risks & darker outlook, How could it affect you?

Updated : Oct 28, 2022 13:03
|
AFP

The global economy is at a difficult crossroads, buffeted by multiple shocks including soaring inflation, rising interest rates and a growing threat of broad debt crisis.

Economy is moving from a world of relative predictability to one of greater uncertainty, International Monetary Fund chief Kristalina Georgieva has said, warning that countries accounting for about one-third of the world economy will experience at least two consecutive quarters of contraction this or next year.

In a speech ahead of the fund's annual meetings next week, the IMF's managing director said to take concerted action to avoid a "dangerous 'new normal,'" as the risks of a worldwide recession are driven ever higher by repeated economic shocks.

This highlights downturns in China and Russia, alongside higher-than-expected inflation, especially in the United States and Europe.

It is partly blamed on Russia's war in Ukraine, which has increased energy prices and food prices.

Whether an economic downtown has officially been declared a recession or not, the impacts of an impending recession can affect your daily life.

Some people may lose their jobs, or find it harder to get promotions, or pay rises big enough to allow them to cope with increases in prices.

Graduates and school leavers could find a first job harder to get.

However, the pain of a recession is typically not felt equally across society, and inequality can increase.

Benefit recipients and those with fixed incomes are particularly likely to struggle. 

InflationIMF ChiefIMF ReportInflation RateIMFRecessionEconomyInflation Hike

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