© Reuters / Yuri Gripas
The world economy is still set to expand in 2022, though by less than the 4.4% previously anticipated, Georgieva said in an interview with Foreign Policy magazine broadcast Tuesday. The IMF is set to update its projections in April when the fund holds its annual spring meetings.
"Some economies that have been fast to recover from Covid are in a stronger position" to cope with the reverberations from Russia's invasion of Ukraine, Georgieva said. The U.S. in particular has "fairly strong fundamentals," she said.
Comment: Claiming the US has 'strong fundamentals' reflects just how deluded (or deceptive) those at the IMF are.
"But those that were not yet coming out of the Covid crisis, that were falling further behind, they're going to be hit even harder," with the "possible risk of recessions."
Tighter financial conditions, as the Federal Reserve and other developed-world central banks raise interest rates, will be a "big shock" for many countries, according to Georgieva. About 60% of low-income countries are in "debt distress' or close to it, double the number that the IMF was worried about back in 2015, she said.
Comment: Companies running from a lucrative market to a failing one is financial suicide.