IMF sees bleaker prospects for the global economy than last month

According to the IMF, the projected growth of the global economy has a more negative scenario than previously thought, as many risk factors are revealed.

On Monday, the IMF research department economist Tryggvi Gudmundssonv admitted in his blog that the purchasing manager indexes from twenty countries are constantly worsening. The future is darker than it was described in the October report “World Economic Outlook” (WEO). The issues are serious and the decrease in economic indicators predicts further complications.  

In the WEO report for the previous month, the IMF fund from Washington reduced the forecast for world growth for the next year from 3.8% in January and 2.9% in July to 2.7%. Also, the fund indicated that there is a 25% opportunity that growth will fall to 2%.

The population from all over the world faced a serious cost-of-living crisis provoked by inflation for products and fuel, and this inflation doesn’t decrease. The rates of interest have risen because of price growth, and it became more difficult to sink a debt. Many are afraid of funding blockage in low-income and emerging-market countries.