The International Monetary Fund (IMF) downgraded its world growth forecast down to 4,4%, 0.5 percentage points less than the previous one, as published by the institution on Tuesday.
According to the text, the global recovery faces multiple challenges, including the spread of the Omicron strain, supply disruptions coupled with rising inflation, and high food and energy prices. However, it is added that while Omicron has been prominent in the first quarter of 2022, this effect will dissipate from the second quarter onwards.
"In the case of the United States, this reflects lower prospects of legislating the Build Back Better fiscal package, an earlier withdrawal of extraordinary monetary accommodation, and continued supply disruptions. China's downgrade reflects continued retrenchment of the real estate sector and a weaker-than-expected recovery in private consumption (...) We expect global growth to slow to 3.8 percent in 2023," stated the report.
