IMF Issues Stark Warning

The International Monetary Fund and the World Bank leadership are issuing stark warnings…

Markets in 2022 have been in turmoil as fear, uncertainty, and doubt have caused a sharp downturn across all highly liquid asset classes.

According to one analyst, 20% of S&P 500 companies cannot pay their current expenses through their cash flow.

Record inflation will cause central banks to raise rates, as several rate hikes have already been imposed in the U.S., with several more likely to come by year’s end and throughout 2023.

This is before current geopolitical tensions arising from the Russia-Ukraine conflict are taken into account, as fears that current escalation may erupt into a full-blown global conflict persist.

The Chief Economist for the IMF told most people to brace themselves for a recession in 2023, as markets continue to stall due to increased rates and runaway inflation.

Here’s more of what these institutions had to say:

https://twitter.com/NanaYhaw_/status/1579960519322406912

The IMF and World Bank warned of the rising risk of a global recession as faster inflation forces central banks to raise interest rates https://t.co/l33oNqHFY2

— Bloomberg (@business) October 10, 2022

According to The Epoch Times:

“There’s a risk and real danger of a world recession next year,” Malpass said, kicking off the discussion. He cited slowing economic growth in advanced economies and currency depreciation in many developing countries.

Debt levels are becoming increasingly burdensome in developing countries as their currencies depreciate, Malpass said, adding that “inflation is still a major problem for everyone, but especially for the poor.”

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‘The worst is yet to come."

The IMF has issued a dire forecast for the global economy, a day after JPMorgan Chase CEO Jamie Dimon warned that the US is likely to enter a recession within the next six to nine months. https://t.co/rY3ESrQcff pic.twitter.com/jSb8Uh807H

— CNN (@CNN) October 11, 2022

NEW – Germany And Italy Will Slip Into Recession In 2023: IMFhttps://t.co/0YF5b9JUqL

— Insider Paper (@TheInsiderPaper) October 11, 2022

Sky News had more:

Now, 2.7% growth is expected next year. It’s down from the 6% growth experienced last year and the 3.2% growth forecast for this year.

This is the “weakest growth profile” since 2001, excluding the acute phase of COVID-19 pandemic and the global financial crisis, the IMF said.