The International Monetary Fund (IMF) has downgraded the global economic forecast from its prior projections on the back of multiple challenges.
The IMF in its recent World Economic Outlook (WEO), says she is doing this even as she expect the world to be faced by global economic issues like rise in inflation and distorted growth this year.
It would be recalled that the The IMF’s forecast for global economic growth in gross domestic product declined from 5.9 percent in the outgone year of 2021 to 4.4 percent this year, with permutations and expectations that it would be weakened further in 2023 to 3.8 percent.
Meanwhile, economic forecast from the fund also indicated a rather pessimistic recovery for the World’s two largest economies which is China and US as it significantly downgraded their 2022 forecast on the back maladapted recovery scope of the both economies from the pandemic.
The fund knocked 0.5 percentage points off its growth forecast for 2022 with only a modest bounce back of 0.2 percentage points for 2023.
For China however, the fund downgraded their 2022 outlook from 5.6 percent to 4.8 percent on the back of the restrictions needed to continue with its zero-covid policy and the subsequent retrenchment in the property sector.
The IMF’s outlook for UK growth was also forecasted to moderate after a strong 2022, with the economy expanding by 0.5 percent in 2023.