IMF cuts global growth outlook amid US, China slowdowns

France24 ^ | Jul 26, 2022

[Oldeconomybuyer]

Washington (AFP) – Surging inflation and severe slowdowns in the United States and China prompted the IMF Tuesday to downgrade its outlook for the global economy this year and next, while warning that the situation could get much worse.

"The outlook has darkened significantly since April," said IMF chief economist Pierre-Olivier Gourinchas. "The world may soon be teetering on the edge of a global recession, only two years after the last one."

"The world's three largest economies, the United States, China and the euro area are stalling with important consequences for the global outlook," he said at a briefing.

In its latest World Economic Outlook, the International Monetary Fund cut the 2022 global GDP estimate to 3.2 percent, four-tenths of a point lower than the April forecast, and about half the rate seen last year.

The top priority for policymakers is to rein in soaring prices, even at the cost of inflicting pain on their citizens, the fund said, since the damage caused by allowing inflation to rage out of control would be much worse.

Gourinchas, in a blog post about the report, noted that the "synchronized" moves by major central banks to deal with the inflation threat "is historically unprecedented, and its effects are expected to bite."

[ConservativeInPA]

Brandon says different

[allendale]

John Kerry and the rest of the globalist lunatics are very happy that less fossil fuel will be burned and billions of humans will be suffering.

[seowulf]

The world may soon be teetering on the edge of a global recession, only two years after the last one.

No problem. Just change the definition.

[Revel]

China owns the politicians in this country. So I would say that any rift between China and the US is staged. We are all pawns in a long game.

[cdcdawg]

“The world may soon be teetering on the edge of a global recession, only two years after the last one.”

Dat rayciss!