WEF summit: World economy has 'buffer' against recession, says Gopinath

"I would say at 3.6 per cent there is a buffer," she said, conceding, however, that risks are uneven around the world

While the world economy faces headwinds, current growth forecasts offer a buffer against a potential global recession, the International Monetary Fund’s No. 2 official said Monday.

Among the major threats to economic growth, IMF First Deputy Managing Director Gita Gopinath told Reuters that the conflict in Ukraine could escalate, adding: “You could have sanctions and counter sanctions”. 

Gopinath said on the sidelines of the WEF in the Swiss resort of Davos that the other challenges included inflation, a tightening of interest rates by central banks and a slowdown in Chinese growth. 

“So all of these provide downside risks to our forecast,” Gopinath said,