The International Monetary Fund (IMF) lowered its GDP growth forecast for the world economy to 2.8% from 2.9% in January. In the medium term, the institution forecasts growth of around 3%, which is the lowest figure in an IMF report since 1990.
The results are because of the progress economies such as China and South Korea have made in raising their living standards, as well as slower global labor force growth and geopolitical disruption, such as Brexit and Russia's invasion of Ukraine. However, according to the report, inflation is unlikely to return to target levels before 2025.
"The anemic outlook reflects the tight policy stances needed to bring down inflation, the fallout from the recent deterioration in financial conditions, the ongoing war in Ukraine, and growing geoeconomic fragmentation," the IMF said.
