IMF Cuts 2022 Global Growth Estimate to 3.6 Pct

Economy

Washington, April 19 (Jiji Press)--The International Monetary Fund said Tuesday that the global economy is projected to grow 3.6 pct in 2022, down 0.8 percentage point from its forecast in January.

Surging crude oil and other prices and supply constraints, both stemming from the Russian invasion of Ukraine, are expected to hamper the global economy's recovery from the novel coronavirus pandemic, according to the Washington-based institution.

For Japan, the IMF revised down its 2022 growth projection by 0.9 point to 2.4 pct, citing the impact of higher crude oil prices and coronavirus-linked restrictions on social activities. Meanwhile, the 2023 growth forecast was upgraded by 0.5 point to 2.3 pct, reflecting the effects of economic stimulus measures to be introduced by the Japanese government.

In its latest World Economic Outlook report, the IMF said that economic sanctions imposed mainly by the United States, European countries and Japan on Russia over the Ukraine war "will have a severe impact on the Russian economy."

The Russian economy is now expected to contract 8.5 pct in 2022 and shrink 2.3 pct in 2023, as its bleak outlook and financial disintermediation arising from sanctions "will lead to a significant drop in private investment and consumption."

[Copyright The Jiji Press, Ltd.]

Jiji Press