The International Monetary Fund warned that the global economy is entering 2022 in a weaker position than previously expected as it downgraded its global growth outlook largely due to clouds gathering over the recoveries in the United States and China.
The IMF’s latest World Economic Outlook calls for the global growth to downshift from 5.9 per cent in 2021 to 4.4 per cent this year.
The Fund saw the US economy growing 4.0 per cent this year while China’s economy grew 4.8 per cent this year thanks to the country’s business-sapping, zero-tolerance COVID-19 policy, and ongoing stress in its heavily indebted property sector.