International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that they will downgrade the global growth forecast of 2.9% for 2023 and noted risks of a global recession were rising, as reported by Reuters.

Key takeaways

"Countries accounting for one-third of the global economy expected to report at least 2 consecutive quarters of contraction this year or next."

"IMF expects global output loss of $4 trillion by 2026."

"Fiscal measures should be targeted, temporary, policymakers must avoid indiscriminate response."

"Central banks should continue to respond to high inflation even as the economy slows."

"China, private creditors must act to address the risk of widening debt crisis in emerging markets."

"Probability of portfolio outflows from emerging markets has risen to 40%."

Market reaction

These comments don't seem to be impacting the market mood in a noticeable way. As of writing, the S&P 500 was trading near Wednesday's closing level at around 3,785.