According to the IMF chief, there is a risk of recession around the world, while the inflation rate will remain at the upper levels. At the same time, due to supply difficulties, there will be pressure on economic activities.
If you are thinking that Corona is passing now and Russia Ukraine crisis ,Russia Ukraine CrisisA lot of time has also passed, in such a situation, things can improve soon, so maybe you are wrong. International organization IMF (IMFIf we believe that the troubles are going to increase further and the situation may worsen next year. IMF chief Kristylina Gyrozhieva has talked about the coming crisis in one of her blogs. According to the blog, 2022 will be difficult and 2023 will be even more difficult. According to him inflation (inflation) will not get rid of the high rate soon and due to this 70 million more people in the poor countries of the world will be in the grip of extreme poverty.
The situation will be worse for the poor
It has been said in the blog that due to rising inflation and problems in supply, the people of poor countries will be worst affected. Referring to India, he said that due to restrictions on food grains by some countries, the problem of food and drink will increase. Most of the poor countries are facing inflation rate of more than 5 percent. Their situation may worsen in the coming times and due to rising inflation and food shortage around the world, 71 million people can reach the state of extreme poverty. This can lead to instability at the level of society in many countries.
Rising inflation increased the concern
According to the IMF chief, the biggest concern for the world at the moment is the rising inflation rate. According to IMF estimates, the inflation rate in developed countries can be 5.7 percent during the year 2022. At the same time, the inflation rate in developing countries can be 8.7 percent. According to him, it is feared that inflation may destroy whatever recovery the economies had achieved after the pandemic. He supported raising the loan rates and said that taking steps now will reduce the pain. According to him, since July 2021, 75 central banks have increased rates on an average 3.8 times.
will have a negative impact on growth
The IMF chief admitted in his blog that the strategy to keep inflation low will have a bad effect on growth. He said that there are full indications that the pace of the economies will be slow in the June quarter. And the uncertainty going forward will increase. With this it is possible that there may be further cuts in the growth projections around the world. Told him clearly that the biggest concern is of China. Due to the slowdown in China’s economy, the loss could be much higher than the current estimates. Along with this, the increasing debt on the economies is also another big crisis.