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  • Senator Sharon Keogan

Senator Sharon Keogan — IMF Warns of Recession

I want to raise the visit of the Minister for Finance, Deputy Donohoe, to Washington DC, in his role as president of the Eurogroup, to oversee a meeting of the International Monetary Fund, IMF, which happened alongside meetings of the World Bank and multiple G7 meetings. At this meeting, the IMF managing director, Kristalina Georgieva, clarified that her outlook for 2023 is that things will get worse before they improve. Her words were “The worst is yet to come”. I would like for the Minister for Finance to come before the House and provide an answer or some thoughts on one of the big questions that arises on foot of that meeting, namely, how we, as a country, are going to navigate our way through global market volatility in light of the IMF’s warnings regarding the risk of a global recession. The IMF stated that colliding pressures from inflation, war-driven energy and food crises and higher interest rates are pushing the world to the brink of recession. Countries representing a third of the world’s economic output could be in recession next year. The three largest economies, the United States, China and the Euro area, will continue to stall according to the IMF's chief economist. In short, the worst is yet to come. For many people, 2023 will feel like a recession.

Will our Government be pleading at that point that the writing was not on the wall? World stocks slipped to a near two-year low last week. The UK Government’s borrowing costs hit a 20-year high. Germany's consumer prices were 10.9% higher year on year in September. The International Energy Agency has warned that OPEC's decision to cut oil production could push prices to levels that tip the world economy to recession. The people in the know are saying that we are headed for stormy waters. If policymakers globally get it wrong and mishandle the fight against inflation, the subsequent recession will be harsh and worldwide. What is this Government’s plan to assist in mitigating a global recession and to insulate Ireland against the worst effects of one? The Minister must come into this Chamber and answer these questions.

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