Posthaste: IIF sees rising risk of global recession — and Canada won't escape the pain [Financial Post (Toronto, Ontario, Canada)]
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Source: Financial Post
Advertisement Good Morning! Two months ago the Institute of International Finance changed its forecast to predict a recession in the eurozone. Now it’s changing it again. Since then new risks have emerged for a world already disrupted by the war in Ukraine and the lingering threat of COVID-19, says the association for the global financial industry. The confluence of the Omicron wave in China which has proved more disruptive than expected and the “disorderly” reaction to tightening by the U.S. Federal Reserve threaten global recession, warned the IIF. The group has downgraded its outlook for global growth “significantly” and now predicts world GDP will essentially flatline in 2022. “That leaves little room to avoid an outright GDP contraction. Recession risk is elevated,” it said. Dismal data out of China this morning appeared to support their view. Retail and factory activity in the world’s second largest economy fell sharply in April as COVID-19 lockdowns kept workers and con
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