IMF Warns of Global Economic Instability Amid Recession Risk and Financial System Tremors

The International Monetary Fund (IMF) has warned that the global economy faces an increasing risk of a painful slowdown, including a possible recession, due to concerns about the global banking system and rising interest rates. The IMF has lowered its growth forecast for 2023 to 2.8%, down from 2.9% in January, and expects growth to hover around 3% for the next five years, which is its weakest medium-term growth forecast since 1990. The IMF has urged central banks to maintain their efforts to contain prices while standing ready to stabilize the financial system.