The International Monetary Fund stated on Sunday that the global economic outlook is even more dire than expected last month, noting a consistent deterioration in purchasing manager surveys in recent months.
The tighter monetary policy brought on by consistently high and widespread inflation, China’s sluggish development momentum, and continuous supply disruptions and food insecurity brought on by Russia’s invasion of Ukraine were cited as the causes of the gloomier outlook.
The international lender downgraded its 2023 global growth prediction from 2.9% to 2.7% last month.
The IMF stated that recent high-frequency indicators ‘confirm that the outlook is gloomier,’ particularly in Europe, in a blog post for a G20 summit being held in Indonesia.
It claimed that most of the Group of 20’s major economies were showing signs of weakness in recent purchasing manager indices, which measure manufacturing and services activity. It was predicted that economic activity would decline while inflation remained stubbornly high.