May 27, 2022

Taylor Daily Press

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The IMF sees a slowdown in the global economy by Chinese and American companies

The IMF sees a slowdown in the global economy by Chinese and American companies

Global economic growth will be lower than expected this year, mainly due to the weak growth of the two largest economies in the world, the United States and China. This is according to a recent forecast by the International Monetary Fund (IMF).

The IMF expects the global economy to grow by 4.4 percent this year (after +5.9 percent in 2021). In October, the company forecast 4.9 percent growth. In 2023, growth is expected to slow to 3.8 percent. This is slightly higher than previously predicted.

The IMF said the low forecast for this year was “mainly the result of cuts to the US and China.” This reduces the growth forecast for the United States, the world’s largest economy, by 1.2 percentage points to 4 percent. The Chinese economy is expected to grow by 4.8 percent, down 0.8 percentage points from the previous forecast.

For the euro area, the IMF forecasts 3.9 percent this year and 2.5 percent in 2023. In 2020 there was a growth of 5.2 percent.

Challenges

Global recovery faces many challenges as the corona virus epidemic enters its third year, the IMF said in its global economic outlook. The rapid spread of the Omigron variant led to shortages of new travel restrictions and workplaces in many countries. In addition, supply issues weigh on the process and contribute to higher inflation, on top of strong demand and higher food and energy price pressures.

So the IMF expects inflation to be higher than expected. This year it will average 3.9 percent in developed economies and 5.9 percent in developing countries. Inflation should start declining in 2023.

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The IMF paints a picture of the World Bank two weeks ago. He also downgraded the growth forecast for the world economy (forecasting 4.1 percent growth in 2022), citing the omicron variant of the corona virus and continued high inflation.

The IMF expects the global economy to grow by 4.4 percent this year (after +5.9 percent in 2021). In October, the company forecast 4.9 percent growth. In 2023, growth is expected to slow to 3.8 percent. This is slightly higher than previously predicted. The IMF said the low forecast for this year was “mainly the result of cuts to the US and China.” This reduces the growth forecast for the United States, the world’s largest economy, by 1.2 percentage points to 4 percent. The Chinese economy is expected to grow by 4.8 percent, down 0.8 percentage points from the previous forecast. For the euro area, the IMF forecasts 3.9 percent this year and 2.5 percent in 2023. In 2020 there was a growth of 5.2 percent. “Global recovery faces many challenges as the corona epidemic enters its third year.” ‘World Economic Outlook’. The rapid spread of the Omigron variant led to shortages of new travel restrictions and workplaces in many countries. In addition, supply issues weigh on the process and contribute to higher inflation, on top of strong demand and higher food and energy price pressures. This year it will average 3.9 percent in developed economies and 5.9 percent in developing countries. Inflation should start declining in 2023. The IMF paints a picture of the World Bank two weeks ago. He also downgraded the growth forecast for the world economy (forecasting 4.1 percent growth in 2022), citing the omicron variant of the corona virus and continued high inflation.

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