IMF, World Bank Warn of Global Economic Outlook, Seeing China’s Reopening as Key Growth Driver Next Year

The International Monetary Fund, World Bank, and others expressed concern about a worsening global outlook while remaining optimistic that China’s reopening will boost the global economy.

According to IMF Managing Director Kristalina Georgieva, indicators indicate that further slowing of global GDP is anticipated. Georgieva said Friday, during a meeting with China’s Premier Li Keqiang in Anhui province, that China’s rebalancing of its Covid policies would benefit both the local economy and the rest of the world.

The IMF anticipates global growth of 2.7% next year, down from 3.2% this year.

“I’m deeply concerned that the world is at risk of a global recession,” World Bank President David Malpass warned, predicting years of weak growth and extensive asset repricing. “This is a true long-term crisis for people in developing countries.”

Meanwhile, WTO Director General Ngozi Okonjo-Iweala stated that global trade is facing serious challenges and that trade growth is slowing. She predicts that global goods trade would expand by only 1% next year, a huge decrease from the predicted 3.5% growth this year.