The International Monetary Fund will revise down its global growth forecast for this year due to a combination of factors including war in Ukraine, high inflation and a slowdown in China, its spokesman said Thursday.
"
We can reasonably expect that there will be a downward revision of the growth forecast for 2022 compared to what we forecast
" in April, said Gerry Rice during a press briefing.
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The IMF had already lowered its global growth projections to 3.6%.
And, the Washington institute is due to publish its updated global growth forecasts at the end of July.
"
So many things have happened and they've happened very quickly since we last released our forecast
," said Gerry Rice.
“
The war in Ukraine continues.
Commodity prices continue to be very volatile, energy prices, especially food prices, are very high.
The slowdown in the Chinese economy (…) seems to be more serious than expected
,” he said.
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He also cited inflation continuing to accelerate “
particularly in a number of advanced economies leading to monetary policy tightening
”.
It is ultimately "
a convergence of crises
" which all weigh on growth, said Gerry Rice.
Monday, the other major institution in Washington, the World Bank, announced that it now expects growth in global gross domestic product of 2.9%, against 4.1% estimated in January.
She had also pointed to the risk of stagflation with a “
prolonged period of weak growth and high inflation
”.