The IMF has worsened this year’s, but improved next year’s global economic growth forecast

By: Trademagazin editor Date: 2022. 01. 25. 11:10

The global economy is growing 0.5 percentage points slower than expected last October, by 4.4 percent this year, according to the International Monetary Fund’s (IMF) revised World Economic Outlook (WEO) forecast released on Tuesday; however, the IMF raised its growth expectations for next year by 0.2 percentage points to 3.8 percent. The organization expects faster-than-expected inflation and rising oil prices of nearly 12 percent this year.

IMF worsened growth forecast for this year

Last year, the global economy grew by 5.9 percent.

According to the compilers of the report, the world economy moved into 2022 in a weaker-than-expected state. With the spread of a new omicron version of the coronavirus, countries have reintroduced mobility restrictions. Rising energy prices and supply disruptions have led to higher-than-expected and broader inflation, especially in the United States and in many emerging market and emerging economies. In China, the continued slowdown in real estate growth and a slower-than-expected recovery in household consumption are also limiting growth prospects. (MTI)