IMF's Georgieva says global economic outlook has 'darkened significantly'

Reuters reports on an interview with IMF's Georgieva who says a global recession in 2023 cannot be ruled out. 

''The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks.

IMF Managing Director Kristalina Georgieva told Reuters the fund would downgrade in coming weeks its 2022 forecast for 3.6% global economic growth for the third time this year, adding that IMF economists were still finalizing the new numbers.

The IMF is expected to release its updated forecast for 2022 and 2023 in late July, after slashing its forecast by nearly a full percentage point in April. The global economy expanded by 6.1% in 2021.''

• IMF managing director Georgieva says can't rule out possible global recession in 2023.
• IMF's Georgieva says global economic outlook has 'darkened significantly' since last economic update in April.
• IMF's Georgieva says IMF will downgrade previous forecast for 3.6% growth in global economy in 2022 and 2023.

Market implications

The US dollar has been in demand this week as concerns mount about the global economy. DXY, a measure of the US dollar vs a basket of rival major currencies has rallied to a fresh cycle bull high:

(DXY monthly chart)