BAKU, Azerbaijan, July 26. Global economic growth will slow down from 6.1 percent in 2021 to 3.2 percent in 2022, Trend reports via the latest World Economic Outlook report from the International Monetary Fund (IMF).
According to the report, this is 0.4 percentage point lower than estimated in the April 2022 outlook, while “the risks to the outlook are overwhelmingly tilted to the downside”.
As IMF explained, negative spillovers from the Russia-Ukraine conflict and tighter monetary policy significantly downgrade the forecast for Europe, while “lower growth earlier this year, reduced household purchasing power, and tighter monetary policy drove a downward revision of 1.4 percentage points in the US”.
“The risks to the outlook are overwhelmingly tilted to the downside. The war in Ukraine could lead to a sudden stop of European gas imports from Russia; inflation could be harder to bring down than anticipated either if labor markets are tighter than expected or inflation expectations unanchor; tighter global financial conditions could induce debt distress in emerging market and developing economies; renewed COVID-19 outbreaks and lockdowns as well as a further escalation of the property sector crisis might further suppress Chinese growth; and geopolitical fragmentation could impede global trade and cooperation,” the outlook noted.
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