IMF, World Bank warn of global recession risk

Pertinent point: Georgieva participates in a town hall discussion with civil society organisations in New York. The IMF has set up a ‘food shock window’ of emergency financing to help those most in need among developing nations. — AFP

NEW YORK: The heads of the International Monetary Fund (IMF) and World Bank are warning of a rising risk of a global recession as advanced economies slow and faster inflation forces the US Federal Reserve to keep raising interest rates, adding to the debt pressures on developing nations.

In the United States, the world’s largest economy, the labour market is still very strong but is losing momentum because the impact of higher borrowing costs is “starting to bite,” IMF managing director Kristalina Georgieva said on Monday.