IMF warns hiking rates too quickly could trigger prolonged recession; anticipates global loss of 4 trillion dollars economic output

International Monetary Fund has warned that hiking rates too quickly could trigger a prolonged recession.

IMF managing director, Kristalina Georgieva has said that the global economic outlook is darkening and the risks of recession are quickly rising. She was addressing a programme at Georgetown University, in Washington DC, yesterday, October 6.

She said, the IMF may once again lower its growth projections. Ms. Georgieva said, the IMF estimate that countries accounting for about one-third of the world economy will experience at least two consecutive quarters of contraction this year or the next year.

The IMF anticipates that the world could lose 4 trillion dollars in economic output between 2022 and 2026.