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Global economic outlook: IMF forecasts a fall in global inflation and growth

14/04/2023
Source : ORISHAS FINANCE
Categories: Economy/Forex

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The International Monetary Fund (IMF) has published a report on the global economic outlook. The institution forecasts global inflation to fall from 8.7% in 2022 to 7% in 2023 and a growth will fall from 3.4% in 2022 to 2.8% in 2023.

The timid signs at the beginning of 2023 suggested that the global economy, which could land softly thanks to a slowdown in inflation and steady growth, has faded away, in a context marked by stubborn inflation high levels and, more recently, disruptions in the financial sector. Thus, according to the IMF, global inflation is expected to fall from 8.7% in 2022 to 7% in 2023 as a result of falling commodity prices, but core inflation (excluding food and energy) is falling more slowly. According to the institution, inflation is not expected to return to its target level until 2025 in most countries.

Le document publié par l' institution mentionne que “bien que inflation has declined due to central bank interest rate hikes, and lower food and energy prices, underlying price pressures are proving to be tenacious, as labour markets are under pressure in a number of countries.” “In the reference scenario, which assumes that recent financial sector tensions will be brought under control, growth falls from 3.4% in 2022 to 2.8% in 2023, before recovering slowly and settling at 3.0% within five years,” the Fund announces.

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