World Bank President, David Malpass told IMF Managing Director Kristalina Georgieva, “There’s a probability and genuine threat of a worldwide recession next year,” during the first face-to-face talks between the two groups since the COVID-19 pandemic.
Both leaders emphasized the importance of working together to assist developing economies, citing the adverse effects of slowed economic growth in developed nations, rising interest rates, challenges posed by climate change, and persistently high food ..
Georgieva said that the International Monetary Fund (IMF) would keep up its pressure on the central banks to keep up its efforts to restrict inflation this week, despite the adverse effects that this would have on the economy.
Malpass, who was criticized last month for not stating whether or not he agreed with the scientific consensus on global warming, said that bank officials were working hard to generate more money to tackle the climatic difficulties that so many developing countries were facing.
According to Georgieva, the international community must raise between $3 and $6 trillion to combat climate change. She argues that to do so, the private sector must be engaged more actively, and “on-scale” financing must be leveraged.
Source: The Economic Times
