The Strategist

IMF warns of further slowdown in global GDP growth

11/15/2022 - 02:35

The COVID-19 pandemic, regulatory interest rate increases in affluent nations, and the conflict in Ukraine might all cause a slowdown in global GDP growth in 2023.

allen watkin
allen watkin
The International Monetary Fund (IMF), which in October lowered its prediction of global GDP growth from 2.9% to 2.7%, made this forecast. According to the fund's documentation, the indication might be cut once more in the future.

"The G20 countries' economic growth has slowed to levels consistent with decline. It is true for both nations with mature economies and nations with developing markets, emphasizing the slowdown's global scope," the IMF writes on its website.

The fund's experts note that countries should continue to make efforts to curb inflation increase and, perhaps, to impose stricter tax and budgetary measures.

The fragmentation of global commerce, according to IMF Managing Director Kristalina Georgieva on November 4th, will cause a 1.5% yearly reduction in the global GDP. Ms. Georgieva calculated the economic losses suffered by Asian nations as a result of trade's crucial role in the organization of their economies at 3% of GDP.