IMF cuts 2023 global growth forecast, says worst yet to come

 

The IMF said Global GDP growth next year will slow to 2.7%, compared, down from its July forecast of 2.9%, as higher interest rates slow the U.S. economy, Europe struggles with spiking gas prices and China contends with continued COVID-19 lockdowns and a weakening property sector. 

The IMF said central bankers had a delicate balancing act to fight inflation without over-tightening, which could push the global economy into an “unnecessarily severe recession” and heap economic pain on emerging markets that are seeing their currencies fall sharply against the dollar. 

But the outlook could darken considerably if the world economy is hit by a “plausible combination of shocks,” including a 30% spike in oil prices from current levels, the IMF said, pushing global growth down to 1.0% next year - a level associated with widely falling real incomes.