Global recession

"The situation in the world economy is extremely unstable and recessions are not excluded", the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said in an interview with Reuters.

Asked about a possible global recession, the fund manager stressed: "The risk has increased, so it cannot be ruled out."

The World Bank increased Turkey's gross domestic product (GDP) projection for 2020, according to its Global Economic Prospects report released on Jan. 5. 

The international financial institution estimates that the Turkish economy grew 0.5% in 2020, up from an estimated 3.8% contraction in June, "amid a substantial expansion in credit," the report said.

The 9th Thessaloniki International Symposium continues on Monday with its second public debate. The theme is "Global Recession and the Greek Economy."

The event features the head of the Foundation for Economic and Industrial research (IOBE), Nikos Vettas, and the director of the Center for European Policy Studies, Daniel Gros.

The International Monetary Fund (IMF) has downgraded its growth forecasts for 2019-2021, primarily reflecting negative surprises to economic activity in a few emerging markets.

In its latest World Economic Outlook, the fund expected global economy to grow 2.9 percent in 2019, 3.3 percent in 2020, and 3.4 percent in 2021

Investment management giant Pimco identifies seven major macro themes for the global economy in 2020, and projects the slowdown in the eurozone to continue at the same time as Greece expects to start a period of robust growth. While the prospect of a global recession has eased for now, when it does come it may be more difficult to tackle, Pimco argues in a report shared with Kathimerini.

According to a research of the German IMC Institute, the possibilities to begin a global financial crisis very soon has sharply increased and is now 32.4 percent.

IMK warns that there will be a major change in central bank policy, which could lead to a severe deterioration of the European economy and even to a new recession. 

Concerns have raised in the world economy as emerging countries see huge capital outflows and economic slowdown with the end of liquidity partyThe global economy entered 2016 with the image of weak recovery in developed countries. However, the weak and fragile outlook in emerging countries, of which Turkey is one, particularly with the economic slowdown, scares everybody.

“With global economic prospects repeatedly marked down over the last five years, there is a concrete risk of a world economy persistently mired in sub-par growth, with unacceptably high levels of poverty and unemployment,” the IMF points out in a report before the G-20 leaders’ summit which will take place in Turkey on Sunday.

The World Bank on late Jan. 13 predicted a pick-up in economic growth for developing countries, spurred by falling oil prices and despite a slight slowdown in global engine China, although it lowered its global growth forecast for 2015 and next year due to disappointing economic prospects in the eurozone, Japan and some major emerging economies that offset the benefit of lower oil prices.