On 11 October 2022, the International Monetary Fund (IMF) reported that the world economy would be in a recession and the global GDP forecast decreasing from 2.9% to 2.7%. The key factors affecting the global GDP are Russia invaded Ukraine, COVID-19, soaring costs, and high-interest rates to reduce the inflation rate.
Meanwhile, the IMF has cut forecasts for the 2 biggest economies, the US and China. The US economic growth will reduce by 1.6% that below the expectation, the cause is FED has hiked the interest rate aggressively to control the inflation rate in the US, furthermore, FED will continuously increase the interest rate.
China’s economic growth this year is 3.2% that lower than initially forecast, and the following year will increase by 4.2%, as strict Covid curbs and a crisis in the property sector tend to slow down driving China’s economic growth slower than expected.
For all that, the IMF was concerned with the developed country’s economic deceleration, currency depreciation in developing countries, and the hike in inflation.
Additionally, the IMF forecasted that global inflation will hit the highest rate at the end of this year at 8.8% from 4.7% in 2021, then will reduce to 6.5% in 2023, and 4.1% in 2024.
Published 19/10/2022
By Windy K.
