World Bank Group President David Malpass warned of increased risk and «real danger» of a global recession at a meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday. Meanwhile, the IMF projected that around one-third of the world economy will see at least two consecutive quarters of negative growth in 2022 and 2023, with the total amount «wiped out» by the slowdown equivalent to $4 trillion between 2022 and 2026.
Georgieva stated that the world «cannot afford inflation to be a runaway train» and advocated «strong action,» although she acknowledged that too much tightening will contribute to recession risks. «Some support is necessary, but that support has to be well-targeted because if it is not, we are adding fuel to the flames of inflation,» she noted.