The International Monetary Fund on Tuesday said global trade growth in 2022 and 2023 would likely slow to 4.1 per cent in 2022 from 10.1 per cent in 2021.
The IMF also expects the global economy to grow by 3.2 per cent in 2022—a 0.4 point reduction since April—while inflation is now believed to be higher than the previous forecasts.
“The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook,” said the IMF’s economic counsellor, Pierre-Olivier Gourinchas.
“Higher-than-expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid Covid-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine.”
“Taming elevated inflation should be the first priority of policymakers around the world,” Pierre-Olivier Gourinchas, the IMF’s chief economist, said in a release.
“This requires tightening monetary policy, as many central banks have started to do both in advanced economies and emerging markets.”
