WEF summit: More forecast downgrades possible, no recession, says IMF

The International Monetary Fund may need to further trim forecasts for economic growth this year but doesn’t expect a global recession, according to Managing Director Kristalina Georgieva.

She told Bloomberg TV in Davos that there have been some “incremental changes” since the Fund last month cut its global growth forecast to 3.6 per cent, including “tightening of financial conditions,” the rise in the value of the dollar and a “slowdown in China.” 

“All of this is making further downgrades not out of the question and for some countries there is now an increased risk of recession,” she said. “But we do not anticipate a global recession.”  Members of the global elite are back in Davos after a two-year hiatus due to the pandemic.