IMF cuts global growth forecasts, warns high inflation threatens recession
The International Monetary Fund (IMF) cut global growth forecasts again on July 26.
The IMF warned that high inflation and Ukraine's war could lead to a downward spiral in economic growth and the world economy could be on the verge of recession if left unchecked.
The IMF said that global real GDP growth will slow to 3.2% in 2022 from a forecast of 3.6% issued in April.
The report said the world's GDP actually shrank in the second quarter due to slowdowns in China and Russia.
The IMF cut its 2023 growth forecast to 2.9% from the April estimate of 3.6%, citing the impact of tighter monetary policy.
Global growth has fallen below 2% only five times since 1970.
In 1973, 1981 and 1982, 2009 and 2020, global growth fell below 2% due to the COVID-19 pandemic and caused a recession.
India's growth forecast for the financial year 2023-24 has also been lowered by 0.8 percentage points to 6.1% due to rising economic risks.
India’s growth forecast by other institutions
Reserve Bank of India's (RBI) estimation of India’s growth in 2022-23 - 7.2%
Asian Development Bank's India's Growth Forecast for 2022-23 - 7.2%
About International Monetary Fund (IMF)
The International Monetary Fund (IMF), a United Nations (UN) specialised agency, was established in 1944 at the Bretton Woods Conference to secure international monetary policies.
The International Monetary Fund is an organisation with 189 member countries.
First Deputy Managing Director- Geeta Gopinath
Headquarters- Washington, D.C., U.S.
Managing Director- Kristalina Georgieva
Chief Economist - Pierre Olivier Gourinchas
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