At the beginning of their annual meetings on Monday in Washington, the International Monetary Fund (IMF) and the World Bank issued a warning about a potential global recession.

According to World Bank President David Malpass, economic growth in Europe's industrialized nations is decreasing.

He said currency depreciation was a concern for low-income countries, where the debt burden was expanding, in reference to the dollar's recent climb.

According to Malpass, the increase in interest rates added to the strain on these nations, and inflation continued to be a serious issue for everyone, but especially the poor.

IMF Managing Director Kristalina Georgieva noted slowing economies in all three of the world’s major economic zones. She pointed to increased energy prices as a problem for the eurozone and to outbreaks of the coronavirus pandemic in China as a persistent cause of supply chain problems.

While the labour market in the United States remained strong, jobs growth was slowing in response to interest rate increases imposed by the Federal Reserve.

On Tuesday, the IMF is to present its latest forecasts for the global economy. Georgieva has announced that the growth prediction will be reduced again.

She pointed to factors such as the pandemic, the Russian invasion of Ukraine and climatic disasters on all continents as creating problematic situations.

For the first time since 2019, the meeting is taking place in a single location, with gatherings over recent years being in hybrid format.

The meeting brings together finance ministers and representatives of banking and development aid, as well as central bankers.