The US economy is set to enter a recession next year, Europe will suffer from high energy prices, and a significant downturn in the global economy is almost inevitable.
This opinion was expressed by former US Treasury Secretary Lawrence Summers and Masood Ahmed, who held high positions in the World Bank (WB) and the International Monetary Fund (IMF), in a joint article published by The Washington Post, TASS reports.
“It is highly likely that next year the United States will enter a recession, Europe will suffer from high energy prices, and China will experience the lowest economic growth in decades. A significant slowdown in global economic growth is almost inevitable,” experts say.
According to them, the world is facing “multiple crises: challenges spanning a wide range of issues from higher interest rates, climate change, an extremely strong dollar, to food shortages, high inflation and a still ongoing pandemic. All of this combined threatens not only the global economy, but the livelihoods of hundreds of millions of people.”
Summers and Ahmed called for the cooperation of representatives of the international community, who next week will take part in the annual autumn session of the governing bodies of the IMF and the World Bank. “International cooperation within the framework of the IMF and the World Bank is of great importance. The challenge for these institutions will not be to simply discuss new funds and funding mechanisms, but to actually increase the support that is needed at the moment,” the authors of the article noted.