IMF Slashes World Growth Outlook Citing China and U.S.

(Bloomberg) — The International Monetary Fund cut its world economic growth forecast for 2022 as the Covid-19 pandemic enters its third year, citing weaker prospects for the U.S. and China along with persistent inflation.

The global economy will expand 4.4% this year, down from an estimate of 4.9% in October, the Washington-based IMF said Tuesday in its World Economic Outlook. The fund forecast 3.8% growth for 2023, up from the prior projection, but cumulative expansion for the two years will still be 0.3 of a percentage point less than previously estimated.