Davos gathering overshadowed by global economic worries and ‘tough year’ ahead
- The crisis – especially for countries in Asia, Africa and the Middle East that rely on affordable wheat, barley and sunflower oil blocked in Ukraine – has been a key topic
- The IMF chief sought to dispel the gloom by saying a global recession isn’t [necessarily] on the cards, but acknowledges it’s going to be a ‘tough year’
Soaring inflation, Russia’s war in Ukraine, squeezed supply chains, the threat of food insecurity around the world, the lingering Covid-19 pandemic: the risks to the global economy are many.
They’ve lead to an increasingly gloomy view of the months ahead for corporate leaders, government officials and other VIPs at the World Economic Forum’s annual meeting in Davos, Switzerland. The war has been a thread, setting back the global economic recovery from the pandemic, economists say.
The managing director of the International Monetary Fund sought to dispel the gloom this week, saying a global recession isn’t in the cards but “it doesn’t mean it’s out of the question”.
Kristalina Georgieva noted that the IMF expects economic growth of 3.6 per cent for 2022, which is “a long way to global recession”. But she acknowledged that it’s going to be a “tough year” and one of the big problems is surging food prices, partly fuelled by Russia’s war.
“The anxiety around access to food at a reasonable price globally is hitting the roof,” she said.
The brewing crisis – especially for countries in Africa, the Middle East and Asia that rely on affordable wheat, barley and sunflower oil that are blocked in the ports of major producer Ukraine – has been a key topic in Davos.