The IMF sees a further slowdown in the world economy in the third quarter

Downside risks continue to dominate the global economic outlook and some countries are expected to enter recession in 2023but it is too early to say whether there will be a generalized situation in the world, the spokesman for the FMI.

Gerry Rice he told reporters that high-frequency data pointed to a further loss of momentum in the third quarter, but gave no details on further revisions to the IMF’s outlook.

In July, the IMF had revised down global growth to 3.2% in 2022 and 2.9% in 2023. Next month it will publish new forecasts.

Clearly, what we had characterized as a global economic slowdown has intensified in recent weeks and months,” Rice said at a virtual news conference.

He added that a continuous confinement by Covid-19 and housing problems were weighing on economic activity in China, while the strengthening of the dollar had implications for many countries.

“Downside risks continue to dominate the outlook with an enormous amount of uncertainty that needs to be factored in,” he said. “We expect some countries to face a recession in 2023. It’s too early to say whether it would be a general global recession.”

Even if some countries weren’t technically in a recession, for many people around the world it would feel like being in one, according to Rice. She pointed out that in Africa alone, hunger had skyrocketed by a third in the last two years, affecting 123 million people.

erp