The International Monetary Fund (IMF) this week released its updated World Economic Outlook and warned of a gloomy and more uncertain economic future. According to the report, inflation in developing economies is anticipated to reach 9.5 percent and is projected to remain higher for longer. The developing world’s debt burden, already crushing because of the COVID-19 pandemic, is getting worse due to the rich world’s efforts to tame inflation by raising interest rates. Meanwhile, there’s an energy crisis and a food crisis and a climate crisis.
“The world may soon be teetering on the edge of a global recession,” IMF economist Pierre-Olivier Gourinchas wrote in a blog post. “Multilateral cooperation will be key in many areas, from climate transition and pandemic preparedness to food security and debt distress.”
