IMF Fears Global Economic Slow Down (October 14th, 2022)

IMF, 2022

The IMF released its October 12th, 2022 World Economic Outlook that highlights risks the global economy faces from inflationary pressure and its impact on people's lives. It looks like we have economic shifting going on as we transition to longer term post COVID policy implementation (Also notice how advanced nations and other nations are fairing. As our economy digitizes it will have increases in transactions and creative capital that will encourage greater growth. The digital economy brings forward great benefits but also a risk of greater disparities.). 

From the IMF's executive summary we discover.....

Global inflation is forecast to be 8.8 percent in 2022, decline to 6.5 in 2023 and 4.1 percent by 2024. We have lots of things going on that includes war in Ukraine, fiscal-monetary policy changes, energy issues (oil restriction), food crises that is mixed up with inflation. That is a lot of market volatility that impacts confidence through increased unknown risks.

Monetary stability and proper fiscal policy seem to be part of the solutions. It is expected nations will pull back on many fiscal supports and actively engage in fighting inflation but such contractions might taint ill the global economy. Economic shocks can be even a bigger issue for the poor and vulnerable that don't have access to financial cushions.

You may also want to read a solid analysis in the World Economic Forum Recession warning from the IMF: What you need to know about the global economy this week