IMF and World Bank sound 'alarm bells' for global economy

The IMF, World Bank, OECD and World Trade Organization have shared their concerns about the worsening global economic outlook. The heads of the IMF, World Bank, OECD and World Trade Organization have warned that “alarm bells” are ringing in the global economy. IMF Managing Director Kristalina Georgieva said economic indicators suggest global growth will weaken further. Speaking after meeting with Chinese Premier Li Keqiang on Friday, Georgieva said China’s easing of strict COVID-19 policies was good news for the domestic economy and the rest of the world. The IMF expects global growth to be 3.2% this year, slowing to 2.7% next year. China holds annual talks with the IMF, World Bank, OECD, World Trade Organization and several other institutions. World Bank President David Malpass also has a pessimistic view of the global outlook. Malpass said he has “deep concerns” that the world economy is heading into recession and that more needs to be done to avoid stagflation. World Trade Organization (WTO) Director-General Ngozi Okonjo Iweala said global trade is facing challenges and trade growth is losing momentum. Iweala shared her forecast that global goods trade will increase by only 1 percent next year, after a 3.5 percent increase projected for this year. OECD Secretary-General Mathias Cormann also shared his forecast that the global economic outlook will continue to deteriorate, and expressed his satisfaction with China’s easing of COVID-19 rules.