The global economy is on a rollercoaster ride and, despite a rebound in the US and UK, the IMF says global growth has not yet returned to the levels of the crisis.
The global economy has not recovered fully from the Great Recession, the International Monetary Fund said in its latest assessment of global economic conditions.
The IMF said the global economy’s recovery had been “the biggest since the crisis in 2008”.
“This recovery has not been sustained at a sufficient pace,” the IMF said in a statement released on Tuesday.
“The economy is currently on a rapid downward trajectory, with the outlook for the coming year having been undermined by a number of factors, including the impact of the current global economic and financial crisis, as well as continued risks to the global recovery.”
The IMF’s World Economic Outlook 2018 said that the global recession had hit the economies of Europe, the US, and Japan hardest.
In a report released earlier this week, the agency also warned that the next global recession could take place in the next few years.
“This means that the longer the global financial crisis continues, the more likely it is that the crisis will impact many countries,” the report said.
“As the financial crisis deepens, the impact on the global economies is likely to be worse than the crisis itself.”
Read more:The IMF has been forecasting the global economic outlook for 2019 and 2020, with forecasts of an unemployment rate of around 9 per cent and a real GDP growth rate of between 1.7 per cent to 2 per cent.
The bank said in the latest report that the outlook was “broadly unchanged” from the previous year.
“There is a clear downside risk to the outlook given the severe economic contraction since the global crisis,” it said.
The International Monetary Bank (IMB) also predicted that global growth would fall to a 2.2 per cent average in 2019.
“We remain concerned about the resilience of the global growth momentum,” the agency said.
“In the medium term, we are concerned that the underlying structural weaknesses in the global labour market will continue to undermine growth prospects.”
The global unemployment rate is now at 8.7 percent, and the global GDP is currently growing at a robust 3.3 per cent per annum.Read more