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Added on the 06/09/2022 12:04:42 - Copyright : Euronews EN
IMF chief Kristalina Georgieva warns the global recession risks are rising and urges policy action "to regroup and to rethink how can we adopt a more proactive precautionary mindset that we had in the past." SOUNDBITE
The World Trade Organization on Wednesday dramatically lowered its global trade forecast for 2023, as Russia's war in Ukraine and other shocks take their toll on the world economy. 'Today the global economy faces multi-prong crises. Monetary tightening is weighing on growth across much of the world,' WTO Director-General Ngozi Okonjo-Iweala told reporters in Geneva. SOUNDBITE
Surging inflation and severe slowdowns in the United States and China prompted the IMF to downgrade its outlook for the global economy this year and next, while warning that the situation could get much worse. SOUNDBITE
The global economic crisis will not be quite as grim as feared this year, but GDP will still contract 4.4 percent, the IMF says in its latest World Economic Outlook. "This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partially by downgrades in some emerging and developing economies," IMF chief economist Gita Gopinath says. SOUNDBITE
According to Reuters, a global gauge of stock markets fell below a two month low. On May 29th, MSCI's all-country world stock index fell about 1-percent with losses stretching across Asia, the US, and Europe. In Europe, the Stoxx 600 index fell 1.4-percent, while the euro was steady after two days of losses. On Wall Street, the top three markets on the New York Stock Exchange lost about 1-percent each. The Dow Jones Industrial Average plunged 270-points, dropping over 1-percent.
Treasury analysis has forecast a possible year long recession for the UK if voters choose to leave the EU. As Jacob Greaves reports, it's the latest government backed report to claim a Brexit would damage Britian's economy.