The International Monetary Fund has slashed its global economic growth forecast for 2022 to 3.2 percent.
This was shown in its report titled ‘Gloomy and more uncertain’, as the Ukraine-Russia conflict continues to disrupt the global supply chain.
The Washington-based lender had in the World Economic Outlook report titled, “War sets back global recovery, in April forecast global growth of 3.6 percent for 2022.
However, the global bank retained Nigeria’s growth forecast for 2022 at 3.4 percent.
According to the latest report, a tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022 as risks began to materialize.
The report said, “Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide––especially in the United States and major European economies––triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID-19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine.
“The baseline forecast is for growth to slow from 6.1 percent last year to 3.2 percent in 2022, 0.4 percentage points lower than in the April 2022 World Economic Outlook. Lower growth earlier this year, reduced household purchasing power, and tighter monetary policy drove a downward revision of 1.4 percentage points in the United States.
“In China, further lockdowns and the deepening real estate crisis have led growth to be revised down by 1.1 percentage points, with major global spillovers. And in Europe, significant downgrades reflect spillovers from the war in Ukraine and tighter monetary policy.”
