Sunday, August 14, 2022

IMF dubs world economy gloomy, uncertain; lowers forecast 

It warned that, with increasing prices continuing to squeeze living standards worldwide, taming inflation should be the first priority for policymakers.

• July 28, 2022
IMF Managing Director Kristalina Georgieva

The International Monetary Fund on Tuesday lowered its growth forecast and raised its inflation outlook due to recent blows to the pandemic-weakened world economy, the state of which was dubbed “gloomy and more uncertain.” 

In its updated forecast on Tuesday, the IMF expects global growth of 3.2 per cent this year, 0.4 percentage points less than what was projected in April.

For the eurozone, the IMF expects growth to be 0.2 percentage points lower than April forecast, at 2.6 per cent.

This year, the IMF expects an inflation rate of 6.6 per cent in the industrialised countries and 9.5 per cent in emerging markets, upward revisions of 0.9 and 0.8 percentage points, respectively.

The IMF said the new assessments are due to “higher-than-expected inflation worldwide especially in the United States and major European economies”.

This it said, 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.

It warned that, with increasing prices continuing to squeeze living standards worldwide, taming inflation should be the first priority for policymakers.

“Tighter monetary policy will inevitably have real economic costs, but delay will only exacerbate them,” it said.

In the U.S., the economy growth was revised down to 2.3 per cent amid reduced household purchasing power and the central bank’s moves to hike interest rates.

In China, COVID-19 outbreaks and lockdowns, as well as a further escalation of the property sector crisis, could further suppress growth, which was revised down by 1.1 percentage points to 3.3 per cent

Meanwhile, China’s slowdown would have major global consequences, it warned.

However, the IMF added that policies to address specific impacts on energy and food prices “should focus on those most affected without distorting prices.” 

It also called on countries to raise COVID-19 vaccination rates in view of future new variants.

The report said that mitigating climate change still requires “urgent multilateral action to limit emissions and raise investments to hasten the green transition.”


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

President Muhammadu Buhari, Goodluck Jonathan, Peter Obi, Umaru Yar'Adua and Olusegun Obasanjo


Buhari, Jonathan, Yar’Adua, Obasanjo wasted $500 million, impoverished Nigerians: Peter Obi

“If Nigeria had spent five per cent of the money borrowed so far on entrepreneurs and power generation, the country would compete with advanced countries,” reasoned Mr Obi.

Former Nigerian President, Goodluck Jonathan

Heading 1

Nigerian political leaders practise ‘bread and butter’ politics: Jonathan

“We must shift away from the politics of bread and butter and ensure that we do not elect leaders that will buy our conscience today and mortgage the future of our children.”

Vice President Yemi Osinbajo


The secret diary of Vice President Yemi Osinbajo

If Buhari had supported me, I would have been the presidential candidate of the APC.

Bayelsa State governor, Douye Diri


Gov. Diri warns cultural terrorism threatening Ijaws’ language, identity

“We are suffering from what is called environmental terrorism, mainly caused by the oil companies. But there is another terrorism that is threatening us is cultural terrorism.”

NCDC DG, Ifedayo Adetifa and NCDC


NCDC inaugurates biological lab to fight emerging diseases

“It will inform public health decision-making and facilitate the development of diagnostics, therapeutics, and vaccines,” said the NCDC director-general.

OPC and Fulani herdsmen

Heading 2

Cow caused OPC, Fulani herdsmen clash in Kwara, four dead: Police

A cow led by a Fulani herder broke the side mirror of OPC’s vehicle, and violence ensued, said the police.