(Washington Composite Electric) International Monetary Fund (IMF) and the World Bank warning that the risk of recession in the global economy is rising because the growth of developed economies and acceleration of inflation have forced the Federal Reserve to continue to raise interest rates.Increase the debt pressure faced by developing countries.
IMF President Georkiyeva Monday (October 10) said at the online event of launching the IMF and the World Annual Conference that the labor market in the world in the world is still very strong, but they are losing their motivationBecause the impact of rising loan costs has begun to appear.The growth of the euro zone and China is also slowing down. The former is due to the rise in natural gas prices, and the latter is due to the interference of crown disease prevention and control measures and the fluctuation of the real estate industry.
IMF estimates that about one -third of economies around the world will shrink at least two consecutive quarters this year and next; by 2026, the output loss will reach $ 4 trillion (about S $ 5.76 trillion).
Georkeva said that during the economic slowdown, decision makers cannot let inflation out of control."If you (decision makers) do not do enough, we will have trouble." She said that financial support should be clear, so as not to promote inflation, and the international community must help the emerging and development that is severely hit by tightening financial conditions due to financial conditions.Economy.
World Bank President Marpas warned on the same occasion that the global economy faces the "real danger" of contraction next year.He pointed out that the strengthening of the dollar is weakening the currency of developing countries, increasing their debt to the level of "difficult to afford".
The Fed ’s radical interest rate hikes have impacted the world. During the IMF and the World Annual Meeting held this week, Fed Chairman Powell will face international pressure and ask him to slow down the pace of interest rate hikes.However, analysts believe that Powell will stand up the pressure.
The chief global economist Hitz, the chief global economist of Citi Group, said: "At these meetings, Powell will be intensely questioned due to the further pros and cons of interest rate hikes."
However, Powell and the Federal Reserve have not yet showed their willingness to relax the pace of interest rate hikes, and may have raised 75 basis points for the fourth consecutive time at the meeting next month.In view of the highest level of inflation in the past 40 years, they believe that curbing inflation is in line with the best interests of the United States and global economies.
Economist at Bloomberg Economic Research believes that unless there is an incident similar to the "Lehman moment", it is difficult to imagine that the Fed's interest rate hike plan will stop.In 2008, the fourth largest investment bank in the United States closed down, triggering the global financial tsunami.
