The International Monetary Fund (IMF) cut global growth forecasts again on Tuesday, warning that downside risks from high inflation and the war in Ukraine are materializing and could push the world economy to the brink of recession if not are controlled.
Global real gross domestic product (GDP) growth will slow to 3.2% in 2022 from a 3.6% forecast released in April, the IMF said in an update to its Global Economic Outlook report.
The Fund added that world GDP contracted in the second quarter due to contractions in China and Russia.
The IMF cut its 2023 growth forecast to 2.9% from its April estimate of 3.6%, citing the impact of tighter monetary policy.
World growth rebounded in 2021 to 6.1% after the Covid-19 pandemic crushed global production in 2020 with a contraction of 3.1%.
“The outlook has significantly worsened since April. The world could soon be on the brink of a global recession, just two years after the last one,” IMF chief economist Pierre-Olivier Gourinchas said in a statement.
Source: CNN Brasil
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