The International Monetary Fund could reduce the forecast

The International Monetary Fund could reduce the forecast

The International Monetary Fund (IMF) plans to further reduce its forecast for global economic growth next month, a spokesman said on Thursday after the World Bank and the Organization for Economic Co-operation and Development (OECD) decided to and reduces their own forecasts.

IMF: Recession announced for some countries

In fact, this would be the third downgrade of the IMF this year. In April, the IMF already reduced its forecast for global economic growth by almost one percentage point to 3.6% in 2022 and 2023, Reuters reports.

Thus, Gerry Rice, a spokesman for the Fund, said at a regular briefing to the IMF that the overall outlook is foreseen for further global growth, albeit at a slower pace, but that some countries may face with a recession.

In his estimates, “Clearly, there have been a number of developments that could lead to further downward revision,” Rice told reporters. “So much has happened and it’s been happening very quickly since we last came up with our forecast.”

The IMF is due to publish an update on the World Economic Outlook in mid-July.

The World Bank has substantially reduced its growth forecast

On Tuesday, June 7, the World Bank lowered its global growth forecast by almost a third to 2.9% by 2022, citing the aggravating damage caused by Russia’s invasion of Ukraine and the COVID-19 pandemic, while warning of the risk of higher than stagflation.

A day later, the OECD cut its forecast by 1.5 percentage points to 3%, although it said the world economy should avoid a 1970s-style stagflation crisis.

In his view, Gerry Rice said the expected reduction was due to the continuing war in Ukraine, volatile commodity prices, very high food and energy prices and a more severe slowdown than expected in the Chinese economy, and rising interest rates. a series of advanced savings. He did not provide details on China’s prospects.

Therefore, “we are witnessing this confluence of crises – the combination of all these things that go in the same direction of materializing the risks of decline,” he said.