The voices of Citi join those of other entities that also warned about the risks of a downturn in the economy. Deutsche Bank CEO Christian Sewing recently stated that the Global economy it is collapsing under multiple pressures, from supply chain problems in China to rising food prices, especially in poorer countries. In the same way, the German banker estimated a “50% chance of a global recession.”
For its part, in the case of the United States, a group of economists from the Wells Fargo bank pointed out that the United States is already in a recession, because its economy would have registered a setback during the second quarter of the year. In the first three months of the year, the country has already registered a drop in its Gross Domestic Product (GDP) of 1.5% per year, the first with a decrease since the second quarter of 2020, at which time the world had entered the coronavirus pandemic.
The situation is not better in the Euro zone, where, according to the ING bank, it will fall into a recession, regardless of whether or not Russia cuts off the gas supply to the region, on which it is especially dependent.
For its part, the International Monetary Fund (IMF) warned last week that the prospects for the world economy have “darkened significantly” in recent months due to the shock in the price of commodities, and warned of the risks of a recession.
After reducing world growth prospects last April from 4.4% to 3.6% for this year, now the IMF is preparing to make a new cut in the report to be published this month, both in the expansion forecast for the current year and for the next.
The managing director of the IMF, Kristalina Georgieva, did not rule out a fall in the global economy, even beyond a slowdown: “it will be a difficult 2022, and possibly an even more difficult 2023, with a greater risk of recession,” he warned.
“Prospects are extremely uncertain”Georgieva stressed and cited, as an example, how “a major disruption to Europe’s gas supply could push many economies into recession and trigger a global energy crisis.”
Source: Ambito
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