IMF said the global economy enters 2022 in a “weaker position” as the spread of Omicron led to reimposed mobility restrictions. Rising energy prices and supply disruptions have resulted in higher and more broad-based inflation than anticipated, notably in the United States and many emerging market and developing economies. Also, the ongoing retrenchment of China’s real estate sector and slower-than-expected recovery of private consumption also have limited growth prospects.
New GDP growth forecasts:
- Global: 2022 at 4.4% (downgraded by -0.5%); 2023 at 3.8% (upgraded by 0.2%).
- US: 2022 at 4.0% (downgraded by -1.2%; 2023 at 2.6% (upgraded by 0.4%).
- Eurozone: 2022 at 3.9% (downgraded by -0.4%); 2023 at 2.5% (upgraded by 0.5%).
- Japan: 2022 at 3.3% (upgraded by 0.1%); 2023 at 1.8% (upgraded by 0.4%).
- UK: 2022 at 4.7% (downgraded by -0.3%); 2023 at 2.3% (upgraded by 0.4%).
- Canada: 2022 at 4.1% (downgraded by -0.8%); 2023 at 2.8% (upgraded by 0.2%).
- China: 2022 at 4.8% (downgraded by -0.8%); 2023 at 5.2% (downgraded by -0.1%).
