Downside risks continue to dominate economic outlook says IMF

The International Monetary Fund said that some countries are expected to slip into recession next year while downside risks continue to dominate the global economic outlook. However, IMF spokesperson Gerry Rice said that it is too early to say if there will be a widespread global recession. Rice said that high-frequency data pointed to a further loss of momentum in the third quarter, given continued high inflation, supply chain problems, and tighter financial market conditions. He gave no details on any further revisions to the IMF’s outlook. The IMF in July revised down the global growth forecast to 3.2% in 2022 and 2.9% in 2023. He said a continuing Covid-19 lockdown and real estate issues were weighing on economic activity in China, while the strengthening US dollar had implications for many countries.