IMF warns 'worst is yet to come' as steps to slow inflation raise risks
BNN Bloomberg
The International Monetary Fund warned of a worsening outlook for the global economy, highlighting that efforts to manage the highest inflation in decades may add to the damage from the war in Ukraine and China’s slowdown.
The IMF cut its forecast for global growth next year to 2.7 per cent, from 2.9 per cent seen in July and 3.8 per cent in January, adding that it sees a 25 per cent probability that growth will slow to less than 2 per cent.
The risk of policy miscalculation has risen sharply as growth remains fragile and markets show signs of stress, the IMF said Tuesday in its World Economic Outlook. About one third of the global economy risks contracting next year, it said, with the U.S., European Union and China all continuing to stall.
The impact of the Federal Reserve’s monetary policy tightening will be felt globally, with the dollar’s strength versus currencies in emerging and developing markets adding to inflation and debt pressures.
