RE: glen27 Jul 2022 06:45
The International Monetary Fund (IMF) used its updated World Economic Outlook to take another red pen to growth forecasts as economies battle the impact of rising prices.
It said that growth was "stalling" in the world's three largest economies (the US, China and eurozone) as a consequence of the deteriorating picture for inflation, linked to the COVID pandemic and latterly Russia's war in Ukraine, forecasting that the problem would remain more stubborn than predicted in its previous update.
Chillingly it warned that under a "plausible" scenario, downside risks for the global economy including a complete shutdown in Russian gas supplies to Europe and prolonged zero-COVID lockdowns in China would result in one of the worst performances for output since 1970 if realised.