The International Monetary Fund plans to cut its global growth forecast for questyear due to a combination of factors including war in Ukraine, rising inflation and a slowdown in the Chinese economy, an agency spokesman announced Thursday.
“We can reasonably expect growth forecasts for 2022 to be lower than expected in April,” said Jerry Rice at a news conference.
The International Monetary Fund had previously lowered its global growth forecast to 3.6%.
The Fund is expected to publish its updated forecasts for global growth at the end of July. “A lot has happened and it has happened so quickly since we made our last prediction,” Rice said.
He added: “The war in Ukraine continues … The prices of materials prime are still very volatile and energy prices, in especially the food ones, are very high. The Chinese economy has slowed down … It looks more dangerous than expected. “
He also stressed the continued acceleration of inflation, “above all in a number of advanced economies, which leads to a tightening of monetary policy “.
And Jerry Rice felt that what is ultimately happening is the “proliferation of crises” affecting growth.
The World Bank, Washington’s other major institution, announced Monday that it is now betting on global GDP growth of 2.9%, up from 4.1% in January.
He also mentioned the risks of stagflation “with a long period of weak growth and high inflation”.
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