International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that the IMF will cut its growth projection for 2023 from the current forecast of 2.9%.
In remarks prepared for her speech at Georgetown University in Washington DC, Georgieva stated that the IMF will warn about increasing recession risks in its World Economic Outlook document due to be released next week. "Overall, we expect a global output loss of about $4 trillion between now and 2026. This is the size of the German economy-a massive setback," she underlined.
"[W]hile monetary policy is hitting the brakes, you shouldn't have a fiscal policy that is stepping on the accelerator," she also pointed out.
