IMF downgrades world economic growth rates for this year and next to 3.2% and 2.9% respectively – Xinhua English.news.cn

Xinhua News Agency, Washington, July 26 (Reporter Xiong Maoling) The International Monetary Fund (IMF) on the 26th lowered its forecast for world economic growth in 2022 and 2023 to 3.2% and 2.9% respectively. The growth forecast was lowered again after that.

The IMF released the update of the “World Economic Outlook Report” on the same day. It is expected that the world economic growth rate will slow from 6.1% last year to 3.2% this year, 0.4 percentage points lower than the forecast in April; the world economic growth rate in 2023 is expected to be 2.9%, That was 0.7 percentage points lower than the April forecast.

The IMF believes that higher-than-expected inflation in major economies around the world, especially in the United States and Europe, has led to tightening of financial conditions, and the negative spillover effects of the Ukraine crisis have further impacted the world economy.

Specifically, the U.S. economic growth in 2022 and 2023 is expected to be 2.3% and 1.0%, respectively, down 1.4 and 1.3 percentage points from the April forecast. The euro zone’s economic growth forecast for this year and next is 2.6% and 1.2%, respectively, down 0.2 and 1.1 percentage points from the April forecast.

The IMF pointed out that the world economy faces multiple downside risks, including the Ukraine crisis that caused Europe to suddenly stop importing natural gas from Russia, inflation that is more difficult to control than expected, and the tightening of global financial conditions that exacerbate the debt problems of emerging markets and developing economies. If these risks materialize and inflation rises further, world economic growth will slow to 2.6% in 2022 and 2.0% in 2023.