The International Monetary Fund (IMF), on Tuesday, October 11, downgraded its global growth projections for next year, warning the world of a possible recession if high inflation is not managed appropriately by policymakers.
The negative assessment was detailed in the “World Economic Outlook” report published by the Fund.
Persistent supply chain disruptions caused mainly by the pandemic and the war in Ukraine have led to rising food and energy prices last year, forcing central banks to sharply raise interest rates to cool their economies.
“In short, the worst is yet to come and, for many people, 2023 will feel like a recession,” says the report.
The IMF projects that nonetheless the global economy is expected to grow by 2.7% in 2023, slightly below the previous estimate of 3.2%.
Inflation is expected to peak at the end of this year and fall from 8.8% in 2022 to 6.5% in 2023.
Source: The New York Times