Please try another search
Economy 3 hours ago (November 13, 2022 at 09 pm EST)
© Reuters. FILE PHOTO: The IMF logo is seen inside headquarters at the conclusion of the IMF/World Bank annual meeting in Washington, U.S., October 9, 2016. REUTERS/Yuri Gripas/File photo
via Andrea Shalal
WASHINGTON (Reuters) – The International Monetary Fund said on Sunday , the outlook for the global economy is dimmer than expected last month, citing a recent continued deterioration in the Purchasing Managers Survey
which blames the bleak outlook on persistently high and broad-based inflation, China Weak growth momentum and tight monetary policy triggered by persistent supply disruptions and food insecurity in Russia. Invade Ukraine.
The global bank last month cut its global growth forecast for 2023 to 2.7% from 2.9% previously.
In a blog prepared for the G20 leaders summit in Indonesia, the IMF said recent high-frequency indicators “confirmed a bleaker outlook”, especially in Europe.
It said that recent purchasing managers’ indices, which measure activity in manufacturing and services, point to weakness in most major G20 economies, with economic activity set to contract while inflation remains stable. Stay high.
“Readings for a growing number of G20 countries have fallen from expansionary territory earlier this year to levels indicative of contraction,” the IMF said, adding that global Diversification exacerbates a “convergence of downside risks.”
“The challenges facing the global economy are enormous, and weak economic indicators point to further challenges ahead,” the IMF said, adding that the current policy environment is “exceptionally uncertain.”
Europe’s worsening energy crisis will severely damage growth and push up inflation, while a prolonged period of high inflation could lead to a larger-than-expected increase in policy rates and further tightening of global financial situation. The International Monetary Fund said.
Increasing weather events will also hurt global economic growth.