The IMF said global growth would slow to a 3.6% rate this year, down from 6.1% in 2021 and 0.8 percentage points lower than in the last forecast in January. Still 3.5% growth is in line with long-run trends.
The International Monetary Fund on Tuesday said the war in Ukraine will lead to a significant slowdown in global economic growth this year.
“Overall risks to economic prospects have risen sharply and policy trade-offs have become even more challenging,” said Pierre-Olivier Gourinchas, the IMF’s chief economist. For 2022, inflation is now projected at 5.7% in advanced countries, 1.8 percentage point higher than previously forecast.It will now last longer than previously expected and there is a risk that the public will come to expect higher inflation, forcing central banks to be more aggressive.
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