The International Monetary Fund may change its conclusions about the upcoming recession this month, according to the Western publication.
The International Monetary Fund (IMF) will significantly lower its forecasts for global economic growth in its next report, according to Bloomberg.
IMF Director of Strategy, Policy and Review Ceyla Pazarbasioglu said that rising food and energy prices, the slowing of capital inflows into emerging markets, the ongoing pandemic and the slowing of economic growth in China are “ makes the task difficult ”for policy makers.
The official spoke after G20 finance ministers and central bank governors ended their meeting on Saturday without issuing a statement, highlighting the difficulty in coordinating a global response to rising inflation and fears of recession.
The IMF has already lowered its forecast for global expansion this year to 3.6% from 4.4% before Russia’s invasion of Ukraine in its April report. Pazarbasioglu added that in the analysis to be published in July, the IMF will “substantially” lower its forecast.
It is difficult for central banks around the world to properly respond to rising prices, caused by supply problems.
“Where central banks pursue monetary policy quickly and precisely and promptly respond to inflation, it is more conducive to a soft landing,” said Hyun Sung-shin, head of research at Bank for International Settlements.
It will be recalled that in May, the IMF announced the worst state of the global economy since World War II.
It was previously reported that Russia’s economic growth slowed more than expected in the first quarter.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.