In preparation for this week’s IMF and World Bank annual meeting in Washington, D.C., the IMF issued its Global Financial Stability Report on Oct. 11 which was pretty blunt:
“The worst is yet to come, and for many people 2023 will feel like a recession,” the report said, adding that “the global environment is fragile with storm clouds on the horizon.” Policymakers around the world are facing an “unusually challenging financial stability environment” where further shocks “may trigger market illiquidity, disorderly sell-offs, or distress,” the report added.
“Next year is going to feel painful,” Pierre-Olivier Gourinchas, the IMF’s chief economist, told CNBC on Oct. 11. “There’s going to be a lot of slowdown and economic pain.”
