IMF cut global economic growth forecast for 2022 to 3.2 per cent in report titled ‘Gloomy and more uncertain
Written by News Room on July 27, 2022
The International Monetary Fund on Tuesday cut its global economic growth forecast for 2022 to 3.2 per cent in its report titled ‘Gloomy and more uncertain’, as the Ukraine-Russia conflict continues to disrupt the global supply chain.
The Washington-based lender had in the World Economic Outlook report titled, “War sets back global recovery, in April forecast global growth of 3.6 per cent for 2022.
However, the global bank retained Nigeria’s growth forecast for 2022 at 3.4 per cent.
According to the latest report, a tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022 as risks began to materialise.
It stated that global output contracted in the second quarter of the year, owing to downturns in China and Russia, while US consumer spending undershot expectations.
The report said, “Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide––especially in the United States and major European economies––triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID-19 outbreaks and lockdowns; and further negative spill overs from the war in Ukraine.