New IMF forecast: The world economy will grow more slowly than originally expected

growth, business

The International Monetary Fund has slightly worsened the outlook for the world economy for this year. Compared to the July forecast, the IMF predicts a slightly slower growth. Next year, however, the global economy is expected to grow as the Fund expected in the summer.

Instead of six percent, only 5.9. Thus, on Tuesday, the International Monetary Fund revised the outlook for global economic growth for this year. Next year, the world economy is expected to grow by 4.9 percent, which is the same as the IMF predicted in July this year. The slight deterioration in this year’s outlook is mainly due to the persistent disruption of global supply chains and rising inflationary pressures.

According to IMF chief economist Gita Gopinath, central banks should be prepared to “act quickly if the risk of rising inflation expectations increases.” According to her, inflation will return to pre-pandemic levels within the next year. However, it will depend on the speed with which the supply of important inputs, including energy, is restored. Higher inflation may further slow the global economic recovery, according to the International Monetary Fund.


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