IMF cuts 2023 global growth forecast.

The International Monetary Fund warned recently that colliding pressures from inflation, war-driven energy and food crises and sharply higher interest rates were pushing the world to the brink of recession and threatening financial market stability.

In gloomy reports issued at the start of the first in-person International Monetary Fund and World Bank annual meetings in three years, the IMF urged central banks to keep up their fight against inflation despite the pain caused by monetary tightening and the rise in the U.S. dollar to a two-decade high, the two main drivers of a recent bout of financial market volatility.

Cutting its 2023 global growth forecasts further, the IMF said in its World Economic Outlook that countries representing a third of world output could be in recession next year.

“The three largest economies, the United States, China and the euro area, will continue to stall,” Pierre-Olivier Gourinchas, the IMF’s chief economist, said in a statement. “In short, the worst is yet to come, and for many people, 2023 will feel like a recession.”

Source: www.cnbc.com

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