The International Monetary Fund (IMF) has lowered its global economic growth forecast to 3.2pc. The forecast comes against the backdrop of an ongoing global economical crisis due to combination of factors such as inflation, COVID-19, and political instability. The IMF predicts there will be 2.5pc economic growth for developed countries, and 3.6pc for developing countries The updated forecast is 0.4 percentage points lower that the Fund's initial forecast in the world economic outlook released in April 2022. The IMF says that the United States and major European countries are experiencing higher than expected inflation, which is putting financial activity around the world in a dilemma. Similarly, China has been stretched by the pandemic and is facing challenges from a slowdown in its financial institutions' resource mobilisation efforts. The Fund says the conflict between Russia and Ukraine has been an added burden on the ongoing global economic crisis.
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