In response to the ongoing shocks to the global economy, which is set to face an output loss of almost $4 trillion by 2026, the International Monetary Fund will reduce growth predictions for 2023 and warn rising recession risks next week, according to IMF chief Kristalina Georgieva.

IMF Managing Director Georgieva stated in an address in Washington, DC, ahead of the fund’s annual meetings next week, “This ($4 trillion global production loss) is the size of the German economy – a major setback for the world economy.”

“We predict that this or next year, the economies of the roughly one-third of the world’s countries will contract for at least two consecutive quarters. Additionally, despite strong growth, real earnings will be down and prices will be rising, giving the impression of a recession “She spoke.

Georgieva described it as having a “darkening perspective,” meaning that things are more likely to deteriorate than improve.

“Concerning war and pandemic, uncertainty is still at an all-time high. Even greater economic shocks could occur.”

After the coronavirus pandemic decimated economies all across the world in October of last year, the IMF had anticipated a robust rebound. Even though the world’s growth rate was 6.1% in 2021, most economists anticipated that the recovery would continue and that price pressures will ease as a result of better immunisation.