The International Monetary Fund (IMF), World Bank and others have raised concerns about a worsening global outlook while hopeful that China’s reopening will help support world growth.

IMF Managing Director Kristalina Georgieva said on Saturday that indicators showed further downgrades to global growth are likely. Speaking after a meeting with China’s Premier Li Keqiang in Anhui province, Ms Georgieva said that China’s recalibration of its COVID policies would be a good thing for the domestic economy and the rest of the world. 

The IMF currently forecasts that global growth will be 2.7 per cent next year, slowing from 3.2 per cent this year. The meeting was a part of the “1+6” dialogue that China holds every year with heads of the IMF, World Bank, OECD, World Trade Organization and others. 

David Malpass, the head of the World Bank, was also downbeat about the global outlook. “I am deeply concerned that the world is at risk of a global recession,” Mr Malpass said, warning of the potential for years of slow growth and widespread asset repricing. “This is a true long-term crisis for people in developing countries.” 

More needed to be done to lift the world out of stagflation, he said, adding that China as a large economy would have to reduce its excess stocks of food and fertilizer to help with shortages elsewhere.