Risks to Global Economy Have Risen, , IMF Slashes Forecast for Growth, in Latest Assessment.
The International Monetary Fund (IMF) released its global economic forecast for the rest of 2022 and 2023 on April 19.
The IMF now predicts a 3.6 percent GDP rate and a 3.2 percent growth rate.
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Both predictions represent a drop of almost an entire point from earlier 2022 forecasts.
Global economic prospects have been severely set back, largely because of Russia’s invasion of Ukraine, Pierre-Olivier Gourinchas, IMF, via CNBC.
The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenges, Pierre-Olivier Gourinchas, IMF, via CNBC.
IMF also predicts that international sanctions imposed on Russia are likely to have “a severe impact on the Russian economy.”.
The fund's predictions for Ukraine, however, are extraordinarily dire.
For 2022, the Ukrainian economy is expected to contract by 35 percent, IMF Assessment, via CNBC.
Even if the war were to end soon, the loss of life, destruction of physical capital, and flight of citizens will severely impede economic activity for many years to come, IMF Assessment, via CNBC.
IMF predicts the Russian invasion will continue to reverberate throughout the global economy.
Russia is a major supplier of oil, gas, and metals, and, together with Ukraine, of wheat and corn.
, IMF Assessment, via CNBC.
Reduced supplies of these commodities have driven their prices up sharply, IMF Assessment, via CNBC.
Inflation plays a key role in the IMF's assessment.
The risk is rising that inflation expectations drift away from central bank inflation targets, , IMF Assessment, via CNBC.
... prompting a more aggressive tightening response from policymakers, IMF Assessment, via CNBC
