Mumbai, April 25 -- Kristalina Georgieva, Managing Director of the IMF has stated yesterday that world economy is facing a new and major test, and it faces it with policy buffers depleted by the shocks of recent years. That puts countries in a difficult position. It also creates urgency for action to strengthen the economies for a world of rapid change. She noted that for the world economy, the IMF is projecting an increase in recession risk from 17 to 30 percent. However, growth is falling below 2 percent, not below zero, so there is a lot that is carrying the world economy-actually the real economy is functioning in a way that we are seeing no predominant risk, Georgieva opined.
She noted further that IMF's earlier projections for a very...