IMF chief says global recession not expected
Participants walk through the Davos Congress Center, the venue of the annual meeting of the World Economic Forum in Davos, Switzerland, Monday, May. 23, 2022. The annual meeting of the World Economic Forum is taking place in Davos from May. 22 until May. 26, 2020. (AP Photo/Markus Schreiber)

DAVOS, Switzerland (AP) — The managing director of the International Monetary Fund says a global recession isn’t in the cards but “it doesn’t mean it’s out of the question.”

Speaking Monday at the World Economic Forum’s annual gathering, Kristalina Georgieva reminded the audience that the IMF is forecasting 3.6% growth for 2022, which is “a long way to global recession.”

A moderator opened a discussion about the global economy by asking the audience if they thought there was a chance of a recession. Most of the crowd of about 100 put their hands up.

Georgieva says the global outlook was “a little bit like the weather here in Davos — the horizon has darkened.”

She says it’s going to be a “tough year” and that one of the big problems is surging food prices, partly fueled by the Russia-Ukraine war.

Georgieva listed a host of other challenges, including rising interest rates, inflation, the strengthening dollar, a slowdown in China, the climate crisis and a recent “rough spot” for cryptocurrencies.

Other speakers on the panel debated whether Europe would fall into recession after the European Central Bank signaled that it would start tightening monetary policy.

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