IMF Slashes Growth Forecasts for 2022/23, Raises Inflation Outlook
2022.04.19 16:36
By Geoffrey Smith
Investing.com — The International Monetary Fund joined its sister institution the World Bank in slashing its growth forecast for 2022, in response to the global surge in inflation, complicated further by Russia’s invasion of Ukraine.
Global gross domestic product will expand only 3.6% both this year and next, the Fund said as it published its new World Economic Outlook on Tuesday. That represents a cut of 0.8 percentage point and 0.2 percentage point from its previous estimates in December.
“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution.” the IMF said. “At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.”
World GDP had rebounded by around 6.1% in 2021 after a severe hit in 2020, the first year of the pandemic.
The Fund also warned that inflation is set to hit an average of 5.7% this year across advanced economies, with emerging economies suffering an average inflation rate of 8.7%. That’s an upward revision of 1.8 points and 2.8 points, respectively.
