IMF warns likelihood of additional supply chain bottlenecks
The International Monetary Fund Tuesday released its latest assessment of the world economy, suggesting the global economic outlook has “worsened significantly” since January – largely due to Russia’s invasion of Ukraine.
In addition, higher inflation leading to tighter monetary policy in many countries and recent lockdowns in China are factors that also pose a risk to economic growth.
“There is a rising risk that inflation expectations become de-anchored, prompting a more aggressive tightening response from central banks,” wrote IMF Economic Counsellor Pierre-Olivier Gourinchas in the report.
The latest IMF forecast projects global growth of 3.6 percent in 2022 and 2023; however, that is down 0.8 and 0.2 percent, respectively, from the January forecast.
continue reading »