World Economic Outlook

The broad-based slowdown in global economic activity has been more severe than expected, and inflation is at its highest level in decades. Countries are facing a cost of living crisis, financial conditions are tightening in most regions, the Russian invasion of Ukraine and the ongoing COVID-19 pandemic are weighing heavily on the economic outlook. Global economic growth is projected to decline from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. That would be the weakest growth performance since 2001, excluding the worst phase of the global financial crisis and the COVID-19 pandemic.

 

Global inflation is expected to rise from 4.7% in 2021 to 8.8% in 2022, but to fall to 6.5% in 2023 and 4.1% in 2024. Monetary policy should continue to aim at restoring price stability, while fiscal policy should aim to ease cost-of-living pressures while maintaining a sufficiently tight overall stance consistent with monetary policy. Structural reforms can increase productivity and ease supply constraints, thereby providing further support for fighting inflation, while multilateral cooperation is essential to accelerate the transition to green energy and prevent fragmentation.

From China Economic.