IMF: Start of the global economy weaker than expected in 2022

A weaker than expected start to the global economy questyear between the spread of the omicron mutation and the return of restrictions in some countries, as well as high inflation due to rising energy prices and disruption of supply chains.

This is what the latest report of the International Monetary Fund affirms on the prospects of the world economy, from which it emerges that the forecast of world economic growth has decreased by half a percentage point compared to the previous forecast of October, bringing the expected growth questyear at 4.4%.

The report predicted a slowdown in global economic growth to 3.8% next year, noting that this reading represents a 0.2% increase from the October forecast.

The IMF clarified that expectations of halting economic support measures in the United States by the government and the Federal Reserve and easing its easing policy more quickly are among the factors that have led to the reduction in growth expectations for states. United by 1.2% questyear at 4 percent.

As for China, the housing debt crisis and turmoil caused by the pandemic prompted the fund to reduce its economic growth forecast from 0.18% to 4.8%. quest’year.

As for the eurozone, the IMF cut its growth forecast for questyear from 0.4% to 3.9%.

Although the report reduced its forecast for the growth of the economies of some of the major countries, it kept its forecast for the Saudi economy unchanged at 4.8% for questyear and 2.8% in 2023.

Regarding inflation, the Fund expects it to remain high over the short term, with a media 3.9% in developed countries and 5.9% in emerging markets and countries in via of development quest’year.

Assuming that medium-term inflation expectations remain steady and that the coronavirus will loosen its grip on the economy, the IMF believes that rising inflation will begin to fade as the supply chain crisis gradually eases and l ‘tightening of monetary policy and the rebalancing of the global crisis demand from consumer goods towards services.

The fund also envisaged a moderation in the increase in fuel prices over the year in and over the next few years, which would also help to contain inflation.

The report says the balance of risks still tends to the negative side, noting that outlook future of the global economy remain hostage to a number of risks, in particularly the speed of overcoming the pandemic and the way in which the tightening of the US monetary policy affects at a global level financial conditions and deadlines for the improvement of supply chains, in addition to the worsening of the crisis The real estate sector in China.

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