The International Monetary Fund issued a warning on Sunday that the recent sector in the banking industry has heightened the dangers to financial stability. This warning comes amid the ongoing stress caused by the Russia-Ukraine war and the post-COVID-19 pandemic impact.
IMF Managing Director Kristalina Georgieva said that 2023 will be another difficult year while speaking at the China Development Forum in Beijing.
Her argument is based on the idea that the pandemic, the war in Ukraine, and tighter monetary policy will all cause global growth to slow to below 3.0%.
She also emphasized the need for caution despite the substantial risks.
She said, “Uncertainties are exceptionally high, with the outlook for the global economy likely to remain weak over the medium term. It is clear that risks to financial stability have increased.”
