As we are learning to live the pandemic this should be the time for growth.
The International Monetary Fund has cut its growth forecast for the world economy by 0.5 percentage points. According to its latest World Economic Outlook, published on Tuesday, the organization now expects global gross domestic product to grow 4.4 percent this year, down from its October 2021 forecast of 4.9 percent.
“The global economy enters 2022 in a weaker position than previously expected,” the report finds, citing the rapid spread of Omicron, supply chain disruptions and high inflation as reasons for the downgrade. The world’s largest economies, the U.S. and China, play a large role in the global growth markdown, as the IMF lowered its outlook for both countries significantly. The falling through of Biden’s Build Back Better plan as well as the expected tightening of monetary policy contributed to a 1.2 percentage-point cut of U.S. GDP growth forecast, while disruptions caused by China’s zero-tolerance Covid policy resulted in a 0.8 percentage-point downgrade of the country’s growth prospects.
IMF Slashes Growth Forecast for 2022
ECONOMIC GROWTH
by
Felix Richter,
Jan 26, 2022