A third of the global economy will experience a recession this year or next. And even where the economy isn’t shrinking, it will feel like it. The forecasts of the IMF have seldom been as gloomy as they are these days.
IMF Managing Director Kristalina Georgiewa speaks of a “massive setback”.
Within a few months, the mood has completely changed. Just a year ago, the International Monetary Fund (IMF) looked to the future with confidence at its annual meeting. With most countries appearing to be getting the Covid pandemic under control, the IMF expected a solid upswing in the global economy. Even the rising inflation could do little to change the optimism, especially as this phenomenon was regarded as a mere short-term spook.