IMF to significantly worsen global economic outlook, says IMF official

18 July, 04:45 PM
In April, the IMF already lowered the global economic growth forecast (Photo:Ueslei Marcelino \ REUTERS)

In April, the IMF already lowered the global economic growth forecast (Photo:Ueslei Marcelino \ REUTERS)

The IMF will significantly worsen its forecast for the state of the global economy in its July review, reported financial news outlet Bloomberg on July 17, citing the director of the IMF Strategy, Policy and Analysis Department, Ceyla Pazarbasioglu.

According to Pazarbasioglu, rising food and energy prices, slowing capital inflows to emerging markets, the ongoing COVID-19 pandemic, and weakening economic growth in China are “majorly complicating” the task of coping with rising risks.

“We are seeing crisis after crisis that are really hitting the global economy,” Pazarbasioglu said.

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In April, the IMF lowered its global economic growth forecast for 2022 from 4.4% to 3.6% due to the Russian invasion of Ukraine. In a report due this month, the Fund will "substantially lower" its outlook.

Head of research at the Bank for International Settlements (BIS), Hyun Song Shin, said that "the path of the global economy to a soft landing is narrowing."

The IMF will publish the next forecast for the global economy on July 26.

Earlier it was reported that the head of the IMF, Kristalina Georgieva, doesn’t exclude the possibility of a recession in 2023. She noted that compared to April, the situation in the global economy has notably deteriorated. 

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