IMF Cuts 2022 Global Economic Growth Forecast
"We project global growth this year at 4.4 percent, 0.5 percentage point lower than previously forecast, mainly because of downgrades for the United States and China," IMF chief economist Gita Gopinath said in a statement on Tuesday.
In the case of the US, this reflects lower prospects of legislating the Build Back Better fiscal package, an earlier withdrawal of extraordinary monetary accommodation, and continued supply disruptions.
China’s downgrade reflects continued retrenchment of the real estate sector and a weaker-than-expected recovery in private consumption.
Supply disruptions have led to markdowns for other countries too, such as Germany.
"We expect global growth to slow to 3.8 percent in 2023," she stated.
"This is 0.2 percentage point higher than in the October 2021 WEO and largely reflects a pickup after current drags on growth dissipate," she added.
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