The global economy is expected to grow 4.4 percent in 2022 – 0.5 percentage points less than the previous forecast in October, the IMF said on Tuesday.
The IMF lowered its forecast for growth in gross domestic product (GDP) in Germany this year to 3.8 percent, 0.8 percentage points less than assumed in October. The main reason given by the IMF was the ongoing interruptions in global supply chains, which are particularly affecting the German economy.
For the USA, the world’s largest economy, the IMF has cut its growth forecast by 1.2 percentage points to 4 percent. The IMF cites the failure of a billion-dollar package for investments in social services and climate protection in the US Congress, which would have boosted the economy, as the main reason for this.
For China, the second largest economy, the forecast was lowered by 0.8 percentage points to 4.8 percent. The IMF cites the problems in the real estate sector, the requirements for local corona lockdowns and a reduced desire to buy by consumers as the reason for this.
The IMF expects a significantly higher inflation rate worldwide this year than expected three months ago. In a forecast for 2022 presented on Tuesday, the IMF assumes an average inflation rate of 3.9 percent for the industrialized countries. This is an increase of 1.6 percentage points compared to the previous October forecast. In developing and emerging countries, the inflation rate is expected to average 5.9 percent in 2022 – an increase of one percentage point.
For 2023, the IMF expects prices to rise much more slowly thanks to fewer disruptions to global supply chains, stabilized energy prices and an overall tighter monetary policy. In the industrialized countries, inflation should then only amount to 2.1 percent, in the emerging and developing countries 4.7 percent.
Source: Nachrichten
