IMF issues gloomy forecast for global economy

The International Monetary Fund has downgraded its forecast for the global economy, saying in its latest report compiled for the upcoming G20 summit that the “outlook is gloomier” than previously expected. 

The IMF has been gradually slashing its forecast for global growth in 2023 since January, when it anticipated 3.8% growth. In October the fund lowered its projection from July’s posting of 2.9% to 2.7%, saying: “we expect countries accounting for more than one third of global output to contract during part of this year or next.” 

Analysts have warned of a 25% probability that downside risks resulting from the Ukraine conflict, along with stubborn inflation, would slow the global economy to less than 2%. 

The IMF noted that there has been a steady worsening in recent months for purchasing manager indices (PMI) which track a range of G20 economies.

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