The IMF on Tuesday warned of a slowdown in global economic growth as the global economy continues to be hit by «increasingly gloomy developments in 2022,» including high inflation, a slowdown in China due to coronavirus lockdowns and the lingering aftermath of the war in Russia vs Ukranie.
The International Monetary Fund has lowered its forecast for global growth and now expects global gross domestic product to grow 3.2% this year and 2.9% in 2023, below previous estimates of April domestic product growth (gross 3.6% for the two years).
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Is it possible come back to the stability?
Some «shocks» have hit the global economy as it tries to recover from the pandemic, including higher-than-expected global inflation, particularly in the United States and Europe, a worse-than-expected slowdown in China caused by coronavirus lockdowns, and “more negative side effects” of the war in Ukraine.
The set now projects headline inflation this year to reach 6.6% in advanced economies and 9.5% in developing countries, although the cost of the 2024 targets is expected to return to pre-pandemic levels will.
Now forecasts GDP growth of 2.3% this year and 1% in 2023, down from previous estimates of 3.7% and 2.3% respectively, given the impact of tighter monetary policies, accurate and limited household purchasing power.
Pierre-Olivier Gourinchas, IMF chief economist in a report said «The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one.»
An uncertain outlook
«The blockages, added to the disruptions to the universal supply chain, and the drop in domestic spending continue to reduce demand for goods and services from China’s trading partners.» The set now envisions China’s economy growing by 3,3%, the slowest pace in 4 decades and more than 1% less than previous estimates.
The World Bank also lowered its forecasts for the global economy last month, forecasting gross domestic product to expand by just 2.9% in 2022, down from a previous estimate of 4.1%.
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What is the future to the companies?
The only thing that large companies can do at this time is to be ready for any unforeseen event.
Although the outlook is not very encouraging, definitely the best thing to do in these cases is to have a stable company that is fully prepared for adversity.
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