International Monetary Fund's managing director has warned of an increasing risk of recession globally in the next 12 months
Kristalina Georgieva's warnings come in the wake of economic crisis compounded by the Ukraine war.
The outlook of the global economy, according to Georgieva, has darkened significantly in the recent months, The Guardian reported.
Peaking commodity price following Ukraine war exacerbated the cost-of-living crisis for hundreds of millions of people, Georgieva said on Wednesday.
When her blogpost said inflation was higher than expected, the prices in the US as per latest figures rose to 40-year-high at 9.1 percent in June.
Just as the ripple effect of crisis is being felt across economies, the US Federal Reserve is likely to hike the interest rates by a historic 1 percent in two weeks' time.
The Bank of Canada shocked markets on Wednesday by raising its base rate by a full percentage point, according to the report.
Other national banks to tighten their monetary policy include the Reserve Bank of New Zealand, the Bank of Korea and Singapore's central bank; New Zeland bumped up benchmark rate by 0.5% this week.
Covid lockdown and supply issues in China crippled the world' recovery from pandemic, according to IMF chief.
She wrote that continuing disruption of natural gas supply to Europe could plunge many economies into recession.
The IMF would be downgrading its growth forecasts for global growth for both 2022 and 2023 later this month, she said.