In the latest World Economic Outlook Report, IMF keeps global economic growth forecasts unchanged at 3.2% in 2022, but downgrade 2023 by -0.2% to 2.7%.
It said: “Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook.”
Global inflation is forecast to rise from 4.7% in 2021, to 8.8% in 2022, but to decline to 6.5% in 2023, and then 4.1% in 2024.
IMF said, “Monetary policy should stay the course to restore price stability, and fiscal policy should aim to alleviate the cost-of-living pressures while maintaining a sufficiently tight stance aligned with monetary policy. ”
