IMF downgrades its outlook for global economy for two years

The International Monetary Fund (IMF) downgraded its outlook for the global economy this year and next due to surging inflation and severe slowdowns in the US and China.

“The outlook has darkened significantly since April, said IMF chief economist Pierre-Olivier Gourinchas.

“The world may soon be teetering on the edge of a global recession, only two years¬† after the last one. The world’s three largest economies, the Unuted States, China and the Euro area are stalling with important consequences for the global outlook, ” he said.

In its latest World Economic Outlook, the IMF cut the 2022 global GDP estimate to 3.2 per cent, four-tenths of a point lower than the April forecast, and about half the rate seen last year.

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