Economic outlook could turn worse: IMF

Urges major economies to act swiftly against inflation

NUSA DUA, INDONESIA:

International Monetary Fund (IMF) chief Kristalina Georgieva on Saturday warned officials from the Group of 20 major economies to take urgent action to combat inflation, warning that the “exceptionally uncertain” global economic outlook could turn worse if higher
prices persisted.

Georgieva, speaking at a G20 finance officials meeting in Indonesia, said Russia’s intensifying war in Ukraine had increased pressure on commodity and energy prices, and global financial conditions were tightening more
than expected.

At the same time, pandemic-related disruptions and renewed supply chain bottlenecks continued to weigh on economic activity.

Pressure was mounting on heavily-indebted countries, and the debt situation was “deteriorating fast,” she said, according to a text of her remarks.

The global economic outlook remains extremely uncertain, the IMF head said earlier this week, warning that further disruption in natural gas supply to Europe could plunge many economies into recession.

Published in The Express Tribune, July 17^th, 2022.

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