MINNEAPOLIS: The International Monetary Fund announced it will again cut its growth predictions, citing a dimming global economic outlook and increased recession risks,  CNN reported.

IMF managing director Kristalina Georgieva stated during a speech at Georgetown University, "We expect that countries accounting for nearly one-third of the world economy will see at least two consecutive quarters of contraction this or next year." Also, despite strong growth, real earnings will be declining and prices will be rising, giving the impression of a recession. The IMF estimates that between now and 2026, the global economy might lose $4 trillion in output. She said, "This is the scale of the German economy - a tremendous setback for the world economy."

Estimates have been routinely revised lower by the IMF since global growth peaked at 6.1 percent annualised in October 2021 after a rapid end to the pandemic. The international financial organisation now projects growth to be 3.2 percent overall this year and 2.9 percent the following.

Next week, when the IMF releases its most recent World Economic Outlook report, those will once more be reduced, according to Georgieva.

The world, according to Georgieva, is experiencing "historic fragility" as a result of a pandemic, a protracted conflict in Ukraine, and harsh waves of extreme weather conditions that have combined to cause a sharp and disastrous spike in prices. The economist from Bulgaria added, "In less than three years, we lived through shock after shock after shock," as per reports.

She urged decision-makers to continue combating inflation but issued a warning that over tightening monetary policy might plunge the world into a protracted recessionary period. She also urged the countries to adopt temporary economic measures that would be targeted at supporting the most vulnerable members of their populations.

"It is more likely to go worse than better," she said, adding that  "Concerning war and pandemic, uncertainty is still at an all-time high. Even greater economic shocks could occur."

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