The institution based in Washington significantly lowers the expected growth in the United States, China, and Germany, three of the world’s major economies.
The global recovery is slower than expected. In an update of its forecasts, published on Tuesday, January 25, the International Monetary Fund (IMF) predicts a 4.4% increase in the gross domestic product (GDP) in 2022, down by 0.5 points compared to its last projections in October 2021, due to the slowdown of the two major economies of the world, China and the United States.
In 2022, Chinese growth is expected to nearly halve compared to 2021, dropping to 4.8%, which is a decrease of 0.8 points compared to the IMF’s last October projections. This is justified by citing difficulties in the real estate sector, sluggish domestic demand, and numerous disruptions tied to the zero-Covid strategy.
The IMF notes that supply chains were disrupted by a surge in demand for manufactured goods and transportation issues in a global logistics system dictated by “just-in-time” practices. These issues reportedly cost the global economy between 0.5 and 1 point of growth in 2021, while also accelerating inflation by an additional point. This has led the IMF to also reduce Germany’s growth forecasts by 0.8 points, which is now expected to peak at 3.8% in 2022.
