IMF lowers global economic forecasts due to high inflation and warns of recession

The International Monetary Fund (IMF) has lowered global growth forecasts for 2022 and 2023 and warned that the world economy could fall into recession amid rising inflation risks. This is compounded by an unexpectedly sharp slowdown in the Chinese economy.

The IMF has published its World Economic Outlook, forecasting that the global economy will grow by 3.2% in 2022 before slowing to 2.9% in 2023. This is 0.4% and 0.7% respectively less than in the April forecast.

The IMF lowered its forecast for US economic growth to 2.3% in 2022 and 1.0% in 2023.

China’s economy is expected to grow by 3.3% this year, the lowest level in 40 years, and India’s growth forecast for this year has been lowered to 7.4%.

The IMF also lowered its forecast for the eurozone economy to 2.6% in 2022.

The IMF forecasts that the Russian economy will contract by 6.0% in 2022 and by 3.5% in 2023, due to sanctions imposed by the United States and the West. The Ukrainian economy will contract by up to 45% in 2022.

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