The pandemic and the Ukraine war are also weighing on the world’s largest economy – the fear of a recession is growing. However, according to IMF boss Kristalina Georgiewa, this will not happen.

The head of the International Monetary Fund, Kristalina Georgieva, assumes that the US economy can just about escape a recession.

“We are aware that the road to avoiding a recession in the US is getting narrower,” she said in Washington. You have to keep an eye on the uncertainty of the current situation – especially with a view to the Russian war of aggression against Ukraine and the corona lockdowns in China. One is aware of the risk, says Georgieva. But the economy could narrowly avoid a recession.

For the world’s largest economy, however, the IMF expects slower growth this year and next after raising the key interest rate last week. A recession will be narrowly avoided, it said. “Reducing inflation and maintaining price stability will protect real incomes and help support growth in the medium term.” However, there is a significant risk that the headwinds will prove more persistent than expected.

The Fed had increased the key interest rate for the world’s largest economy by 0.75 percentage points to 1.5 to 1.75 percent last week. At the same time, the central bank announced another increase of 0.5 or 0.75 percentage points for the end of July. The US inflation rate has been well above the Fed’s medium-term target of two percent for many months. In May, for example, consumer prices rose by 8.6 percent compared to the same month last year. The unemployment rate remains at a very low 3.6 percent.