The leaders of the International Monetary Fund and World Bank are warning that the global economy may experience a worldwide recession next year.
World Bank President David Malpass and International Monetary Fund Managing Director Kirstalina Georgieva have both warned of a coming global recession, Reuters reported earlier this week. Their comments come as the war in Ukraine continues amid high inflation and rising energy prices.
“There’s a risk and real danger of a world recession next year,” Malpass warned in a meeting of the two institutions, Reuters reported. He cited the war in Ukraine and the continuing fallout of state responses to the COVID-19 pandemic, and “cited slowing growth in advanced economies and currency depreciation in many developing countries.”
Georgieva warned that economic activity is slowing in Europe, China, and the United States, where she added that “interest rate hikes ‘are starting to bite.'”
World Bank's @DavidMalpassWBG , IMF's @KGeorgieva see rising risks of global #recession https://t.co/w0WzHydsdw
— Andrea Shalal (@andrea_shalal) October 10, 2022
The revelation came around the same time Joe Biden admitted for the first time that the U.S. economy is heading toward a recession, comments that came despite some economic pundits having declared the U.S. economy to be in recession months prior.
Biden’s government has repeatedly suggested that the government is in a “transition” and suggested that any hypothetical recession would come next year, if at all.
Elsewhere, in the United Kingdom, the government reportedly recently considered a public relations campaign to encourage voluntary energy rationing. Customers have reported their energy bills doubling or tripling, causing the government to take action to help citizens afford energy bills that rose sharply after the country’s reaction to the war in Ukraine.
King Charles III and Joe Biden on September 18, 2022 (UK Foreign, Commonwealth & Development Office / Flickr / Edited)
The new Conservative Prime Minister, Liz Truss, has publicly promised that there will be no campaign to require energy rationing under her watch.
Though energy prices continue to rise around the world, Saudi Arabia-led OPEC recently announced it will cut oil production by 2 million barrels per day. The move came after Biden traveled to the country and fist bumped with the Crown Prince.
WSJ:
In Aug. Saudi was considering oil increase of 500,000 BPD.Shortly AFTER Biden's fist-bump visit the Saudi's REDUCED that plan to just 100K BPD.
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Days Before OPEC met to discuss production cuts.
Biden officials called Saudi contacts.
Pleading for a 1 mo. delay (Post 8 Nov) pic.twitter.com/lflPwdEhsh— Tom T. ن® (@VRWCTexan) October 12, 2022
