IMF Downgrades Its World Economic Forecast

The IMF left its 2022 prediction unchanged, a modest 3.2% figure that would be only slightly more than half of last year's 6% growth. Aside from the peak of the COVID-19 pandemic in 2020, the IMF said it is "The weakest growth profile since 2001. The worst is yet to come, and for many people, 2023 will feel like a recession." More than a third of the global economy will see two consecutive quarters of negative growth in the coming year, the IMF predicted. "IMF Managing Director Kristalina Georgieva, speaking as the IMF and the World Bank meet in Washington, warned that the"risks of recession are rising'' around the world and that the global economy is facing a "Period of historic fragility." With economic uncertainty and rapid consumer price increases in the U.S., the IMF cut its predicted growth for the American economy to 1.6% this year, down from the July projection of 2.3%. The IMF said it is expecting only 1% U.S. growth next year. The IMF said it foresees 3.2% growth in China this year, down sharply from 8.1% last year. The IMF said it projects economic growth of just a half percentage point in the 19-nation European bloc that uses the euro currency.