The Strategist

IMF names main challenges for the global economy

10/12/2022 - 08:39

According to Pierre-Olivier Gourinchas, the chief economist of the International Monetary Fund (IMF), the three major concerns facing the globe now are the military conflict in Ukraine, growing living expenses, and China's weakening economy.

Nicola Delfino
Nicola Delfino
At a press conference to introduce the IMF report, Gourinchas stated that "the global economy continues to face significant challenges from three powerful forces: the Russian invasion in Ukraine, the cost-of-living crisis brought on by sustained and widening inflationary pressures, and the slowdown in China."

He pointed out that the IMF anticipates the decline to be more severe, lowering its projection for global GDP in 2023 to 2.7%. A third of the world's economies, according to Gourinchas, are anticipated to decline in 2022 or 2023.

In a study released in October, the IMF maintained its prediction for global growth in 2022 at 3.2% but cut it for 2023 by 0.2 percentage points to 2.7%. The fund also increased its predictions for 2022 and 2023, taking them from 5.7% and 6.5%, respectively, to 8.8% and 8.8%, respectively, for global inflation.