IMF warns global economy teetering on brink of recession as it slashes growth outlook


Market expert predicts recession is ‘all but inevitable’

Thru the Cycle President John Lonski joins Dagen McDowell to discuss the possibility of a recession in the coming months, predicting the end of Federal Reserve rate hikes could be coming soon.

The International Monetary Fund on Tuesday slashed its global growth outlook for 2022 and 2023, warning the world economy faces a "gloomy and more uncertain" future that could include a recession. 

The Washington-based institution said in its latest World Economic Outlook that global gross domestic product will grow by 3.2% this year – a 0.4 percentage point drop from its April estimate. The IMF expects global growth to decelerate further to 2.9% next year. By comparison, the economy grew by 6.1% last year following the brief but extremely severe recession in 2020.

"The world may soon be teetering on the edge of a global recession, only two years after the last one," Pierre-Olivier Gourinchas, the IMF’s chief economist, said in a blog accompanying the latest report.

This is a developing story. Please check back for updates.

Source: Read Full Article