The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation.

In an update of the World Economic Outlook, the IMF. said that economic prospects had darkened significantly in recent months as a result of the war in Ukraine, inflation and a resurgent pandemic.

The agency warned that if these threats continue to intensify, the global economy could face one of its weakest years since 1970s, when a period of intense stagflation gripped the globe.

“The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist,&nbsp;wrote in a blog post.

&nbsp;Put simply, the outlook for the global economy is “increasingly gloomy,” he said.

The Washington-based institution said that problems in China, EU and the US had triggered fall of global output in the second quarter of this year— the first contraction since the start of the Covid pandemic.

“Higher than expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine,” he said.

By the fourth quarter of 2022, the IMF said that was forecasting global inflation of 8.3 per cent, up from its April estimate of 6.9 per cent.

The World Bank, too, had made a similar prediction in June for the global economy, saying that the Ukraine war and the COVID-19 pandemic have continued to hinder global economic growth.

Also read |&nbsp;<a href="https://www.wionews.com/world/sp-predicts-one-third-decline-in-chinas-real-estate-sales-as-situation-worsens-501041" hreflang="en">S&amp;P&nbsp;predicts&nbsp;one-third decline in China's real estate sales as situation worsens</a>

"Things have gotten, unfortunately, much worse than what we expected," World Bank Prospects Group Director Ayhan Kose&nbsp;said in June.

"We were expecting a slowdown. That slowdown is much more pronounced now. Growth is going to go down to 2.9 per cent, at the global level. Last year it was 5.7 per cent."

Also read |&nbsp;<a href="https://www.wionews.com/technology/microsofts-earnings-suffer-as-computer-sales-decline-500998" hreflang="en">Microsoft’s earnings suffer as computer sales decline</a>

The IMF said that the recession in Russia this year was still significant and that its economic output could deteriorate further next year as the impact of the sanctions are intensified.

(With inputs from agencies)

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The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation.

The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation. In an update of the World Economic Outlook, the IMF. said that economic prospects had darkened significantly in recent months as a result of the war in Ukraine, inflation and a resurgent pandemic. The agency warned that if these threats continue to intensify, the global economy could face one of its weakest years since 1970s, when a period of intense stagflation gripped the globe. “The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote in a blog post. Put simply, the outlook for the global economy is “increasingly gloomy,” he said. The Washington-based institution said that problems in China, EU and the US had triggered fall of global output in the second quarter of this year— the first contraction since the start of the Covid pandemic. “Higher than expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine,” he said. By the fourth quarter of 2022, the IMF said that was forecasting global inflation of 8.3 per cent, up from its April estimate of 6.9 per cent. The World Bank, too, had made a similar prediction in June for the global economy, saying that the Ukraine war and the COVID-19 pandemic have continued to hinder global economic growth. Also read | S&P predicts one-third decline in China's real estate sales as situation worsens "Things have gotten, unfortunately, much worse than what we expected," World Bank Prospects Group Director Ayhan Kose said in June. "We were expecting a slowdown. That slowdown is much more pronounced now. Growth is going to go down to 2.9 per cent, at the global level. Last year it was 5.7 per cent." Also read | Microsoft’s earnings suffer as computer sales decline The IMF said that the recession in Russia this year was still significant and that its economic output could deteriorate further next year as the impact of the sanctions are intensified. (With inputs from agencies) WATCH WION LIVE HERE

‘Global economy teetering on edge of recession’: IMF paints a gloomy picture

Hong Kong has fallen into recession, hit by more than five months of <a href="https://www.wionews.com/videos/protests-in-hong-kong-continue-rally-against-police-brutality-258386">anti-government protests</a> that show no signs of relenting, and is unlikely to achieve annual economic growth this year, the city's Financial Secretary said.

"The blow to our economy is comprehensive," Paul Chan said in a blog post on Sunday, adding that a preliminary estimate for third-quarter GDP on Thursday would show two successive quarters of contraction - the technical definition of a recession.

He also said it would be "extremely difficult" to achieve the government's pre-protest forecast of 0-1 per cent&nbsp;annual economic growth.

Protests in the former British colony have reached their<a href="https://www.wionews.com/world/protests-erupt-in-hong-kong-police-fire-tear-gas-to-clear-rally-258401"> 21st week</a>. On Sunday, black-clad and masked demonstrators set fire to shops and hurled petrol bombs at police who responded with tear gas, water cannon and rubber bullets.

Protesters have routinely torched store fronts and businesses including banks, particularly those owned by mainland Chinese companies and vandalised the city's metro system<a href="https://www.wionews.com/world/hong-kong-shopping-malls-metro-close-early-as-more-protests-planned-254952"> MTR Corp </a>as they view it as acting at the government's behest to curtail protests.

The MTR has shut services early for the past few weeks and said it will close around two hours earlier than normal on Monday by 11 p.m. to repair damaged facilities.

Tourists numbers have plummeted, a decline Chan called an "emergency" with the drop in visitor numbers worsening in October, down nearly 50 percent.

Retail operators, from prime shopping malls to mom and pop businesses, have been forced to shutter for multiple days over the past few months.

While authorities have announced measures to support local small and medium seized enterprises, Chan said the measures could only "slightly reduce the pressure".

"Let citizens return to normal life, let industry and commerce to operate normally, and create more space for rational dialogue," he wrote.

Protesters are angry about what they view as increasing interference by Beijing in Hong Kong, which returned to Chinese rule in 1997 under a "one country, two systems" formula intended to guarantee freedoms not seen on the mainland.

China denies meddling. It has accused foreign governments, including the United States and Britain, of stirring up trouble.

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Hong Kong has fallen into recession, hit by more than five months of anti-government protests that show no signs of relenting, and is unlikely to achieve annual economic growth this year, the city's Financial Secretary said.

Hong Kong has fallen into recession, hit by more than five months of anti-government protests that show no signs of relenting, and is unlikely to achieve annual economic growth this year, the city's Financial Secretary said. "The blow to our economy is comprehensive," Paul Chan said in a blog post on Sunday, adding that a preliminary estimate for third-quarter GDP on Thursday would show two successive quarters of contraction - the technical definition of a recession. He also said it would be "extremely difficult" to achieve the government's pre-protest forecast of 0-1 per cent annual economic growth. Protests in the former British colony have reached their 21st week. On Sunday, black-clad and masked demonstrators set fire to shops and hurled petrol bombs at police who responded with tear gas, water cannon and rubber bullets. Protesters have routinely torched store fronts and businesses including banks, particularly those owned by mainland Chinese companies and vandalised the city's metro system MTR Corp as they view it as acting at the government's behest to curtail protests. The MTR has shut services early for the past few weeks and said it will close around two hours earlier than normal on Monday by 11 p.m. to repair damaged facilities. Tourists numbers have plummeted, a decline Chan called an "emergency" with the drop in visitor numbers worsening in October, down nearly 50 percent. Retail operators, from prime shopping malls to mom and pop businesses, have been forced to shutter for multiple days over the past few months. While authorities have announced measures to support local small and medium seized enterprises, Chan said the measures could only "slightly reduce the pressure". "Let citizens return to normal life, let industry and commerce to operate normally, and create more space for rational dialogue," he wrote. Protesters are angry about what they view as increasing interference by Beijing in Hong Kong, which returned to Chinese rule in 1997 under a "one country, two systems" formula intended to guarantee freedoms not seen on the mainland. China denies meddling. It has accused foreign governments, including the United States and Britain, of stirring up trouble.

Hong Kong enters recession as protests show no sign of relenting

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‘Global economy teetering on edge of recession’: IMF paints a gloomy picture

Hong Kong enters recession as protests show no sign of relenting