Global economy faces 'its biggest test' since WWII www.cnn.com
Davos, Switzerland (CNN Business)The global economy is being brought to the edge of a precipice by crisis upon crisis.
As the first World Economic Forum to be held in person since 2020 opened in Davos, Switzerland on Monday, the International Monetary Fund said the economy faces "perhaps its biggest test since the Second World War."
"We face a potential confluence of calamities," IMF Managing Director Kristalina Georgieva said in a statement.
She warned that Russia's invasion of Ukraine has "compounded" the effects of the Covid-19 pandemic, weighing on the economic recovery and fanning inflation as the cost of food and fuel jumps.
Rising interest rates are adding to pressure on countries, companies and households with big piles of debt. Market turbulence and ongoing supply chain constraints also pose a risk.
And then there's climate change.
To limit the economic stress, the IMF is calling for government officials and business leaders meeting in Davos to discuss lowering trade barriers.
But as countries battle growing dismay about the cost-of-living crisis at home, some are heading in the opposite direction, implementing restrictions on trade in food and agricultural products that can exacerbate shortages and push up prices globally.
Earlier this month, India's decision to ban the export of wheat sent the price of the grain soaring, even though it's a relatively small exporter. Indonesia banned most exports of palm oil in April to protect domestic supplies, but will lift the ban this week.
— This is a developing story and will be updated.
Published Date:2022-05-23