Now, 2.7% growth is expected next year. It\u2019s down from the 6% growth experienced last year and the 3.2% growth forecast for this year.<\/p>\n\n\n\n
This is the \u201cweakest growth profile\u201d since 2001, excluding the acute phase of\u00a0COVID-19<\/strong>\u00a0pandemic and the global financial crisis, the IMF said.<\/p>\n\n\n\n It reflects \u201csignificant slowdowns\u201d for the largest economies as America\u2019s gross domestic product (GDP) contracted in the first half of 2022, followed by the Euro area\u2019s contraction in the second half of 2022, and prolonged COVID-19 outbreaks and lockdowns in\u00a0China<\/strong>\u00a0with a growing property sector crisis.<\/p>\n\n\n\n \u201cThe world is in a volatile period: economic, geopolitical, and ecological changes all impact the global outlook,\u201d the report says.<\/p>\n\n\n\n While the IMF issued a\u00a0warning to the UK, following the mini-budget<\/strong>\u00a0market turmoil, this World Economic Outlook report was completed prior to the chancellor\u2019s mini-budget announcement, so does not reflect the ensuing market activity.<\/p>\n\n\n\n Nevertheless, IMF chief economist Pierre-Olivier Gourinchas told reporters that the government should ensure its tax and spending plans are in line with the Bank of England\u2019s inflation-fighting remit.<\/p>\n\n\n\n \u201cFiscal policy should be aligned with monetary policy,\u201d he said when asked about Britain\u2019s economic situation and the\u00a0turmoil in its government bond market<\/strong>.<\/p>\n\n\n\n \u201cCentral banks are trying to tighten monetary policy, and if you have at the same time fiscal authorities that try to stimulate aggregate demand, it\u2019s like having a car with two people in the front\u2026 each trying to steer the car in a different direction. That\u2019s not going to work very well.\u201d<\/p>\n\n\n\n The future health of the global economy relies on the \u201csuccessful calibration\u201d of monetary policy, the course of the war in Ukraine, and the possibility of further pandemic-related supply-side disruptions, for example, in China.<\/p>\n\n\n\n Inflation could also continue to worsen as more energy and food price shocks cause it to persist for longer.<\/p>\n\n\n\n About a third of the world economy faces two consecutive quarters of negative growth, the IMF also forecast.<\/p>\n","protected":false},"excerpt":{"rendered":" he International Monetary Fund (IMF) has predicted a tough 2023 as it cut growth predictions and forecast economic contraction in a third of the world. \u201cThe worst is yet to come,\u201d the global financial institution\u2019s World Economic Outlook report said. \u201cFor many people 2023 will feel like a recession,\u201d it added. A downward revision of […]<\/p>\n","protected":false},"author":8,"featured_media":25356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61,43,1],"tags":[7358,6607,9330,5673,5307,5249,13175,1425,5222,5200,8440,5262,11337,9198,5196,5494,1258,2419,746,10627,6496,9643,3577,1237,375,2264,6543,12634,5060,6546,10954,2183,8062,5205,10742,5485,96,9834,12103,6544,6069,3306,1502,12605,5180,5251,3954,10415,36],"class_list":["post-26484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-local-news","category-news","tag-bank","tag-bank-of-england","tag-banks","tag-bond","tag-britain","tag-budget","tag-car","tag-chancellor","tag-covid","tag-covid-19","tag-crisis","tag-cut","tag-demand","tag-economies","tag-economy","tag-energy","tag-england","tag-euro","tag-feel","tag-financial-crisis","tag-food","tag-fund","tag-future","tag-gdp","tag-ghana-police","tag-government","tag-growth","tag-health","tag-imf","tag-inflation","tag-international","tag-international-monetary-fund","tag-international-monetary-fundimf","tag-july","tag-market","tag-pandemic","tag-china","tag-pierre-olivier-gourinchas","tag-price","tag-property","tag-recession","tag-steer","tag-tax","tag-uk","tag-ukraine","tag-war","tag-will","tag-work","tag-world"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/26484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=26484"}],"version-history":[{"count":0,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/26484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/25356"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=26484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=26484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=26484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"'The](\"https:\/\/www.myjoyonline.com\/wp-content\/uploads\/2022\/10\/imf-recession-chart-1024x576.jpg\" "\\"'The")
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