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IMF lowers expectations for global growth as US, China downshift
Yahoo Finance
IMF lowers expectations for global growth as US, China downshift
Brian Cheung · Reporter
Tue, January 25, 2022, 12:22 PM
The emergence of new COVID-19 variants and rising inflation have thrust the global economy into a “weaker position than previously expected,” the International Monetary Fund said Tuesday.
In its updated World Economic Outlook report, the IMF now expects the global economy to grow by 4.4% in 2022, half a percentage point lower than its last round of forecasts in October. ... The downgrade is tied largely to dampened expectations for growth in the two largest economies: the U.S. and China.
In the United States, the IMF said the collapse of President Joe Biden’s Build Back Better fiscal package, alongside an earlier pullback in easy money policies from the Federal Reserve, led to a 1.2% downward revision. The U.S. economy is now expected to expand by 4.0% this year, compared to the 5.2% it had originally forecast in October.
“Our expectation is that growth will slow — as it should — to prevent the economy from overheating any more, but it should be a fairly well-behaved transition down,” IMF Chief Economist Gita Gopinath told Yahoo Finance in an interview Tuesday.
{snip}
IMF lowers expectations for global growth as US, China downshift
Brian Cheung · Reporter
Tue, January 25, 2022, 12:22 PM
The emergence of new COVID-19 variants and rising inflation have thrust the global economy into a “weaker position than previously expected,” the International Monetary Fund said Tuesday.
In its updated World Economic Outlook report, the IMF now expects the global economy to grow by 4.4% in 2022, half a percentage point lower than its last round of forecasts in October. ... The downgrade is tied largely to dampened expectations for growth in the two largest economies: the U.S. and China.
In the United States, the IMF said the collapse of President Joe Biden’s Build Back Better fiscal package, alongside an earlier pullback in easy money policies from the Federal Reserve, led to a 1.2% downward revision. The U.S. economy is now expected to expand by 4.0% this year, compared to the 5.2% it had originally forecast in October.
“Our expectation is that growth will slow — as it should — to prevent the economy from overheating any more, but it should be a fairly well-behaved transition down,” IMF Chief Economist Gita Gopinath told Yahoo Finance in an interview Tuesday.
{snip}