IMF forecasts slowdown in world economic growth of 3.2 %

The International Monetary Fund has published its report on global economic growth, in which it forecasts a slowdown of 3.2 % for the rest of 2022.

Among the reasons for this trend, the agency points out: “Several shocks have affected a world economy already weakened by the pandemic: higher-than-expected inflation around the world, especially in the United States and the main European economies, which has triggered tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting Covid-19 outbreaks and lockdowns; and other negative side effects of the war in Ukraine.”

Consequently, the forecast is for a slowdown of 0.4 percentage point less than in the April 2022 World Economic Outlook.

One of the determining factors in this scenario is global inflation, with an increase driven by high food and energy prices after the start of the conflict between Russia and Ukraine.

“(Inflation) is forecast to reach 6.6% in advanced economies and 9.5% in emerging market and developing economies this year; upward revisions of 0.9 and 0.8 percentage points, respectively. In 2023, disinflationary monetary policy is expected to take effect, with global output growing by just 2.9 %.”

M.Pino

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Source: finanzasdigital