Bloomberg: IMF to cut global growth outlook ‘substantially’

The International Monetary Fund will cut its global economic growth outlook “substantially” in its next update, as finance chiefs grapple with a shrinking list of options to address the worsening risks, Report informs, citing Bloomberg.

Surging food and energy prices, slowing capital flows to emerging markets, the ongoing pandemic and a slowdown in China make it “much more challenging” for policymakers, Ceyla Pazarbasioglu, the IMF’s director for strategy, policy and review, said at a Sunday panel in Bali, Indonesia.

“It’s shock after shock after shock which are really hitting the global economy.”

In its April report, the IMF already lowered its expectations for world economic growth this year from 4.4% to 3.6%. A new forecast will be released this month.

Bloomberg notes that financial leaders of the G20 and other countries are left with fewer options to avoid rising risks. This also applies to central banks that are looking for the right response to rising prices and inflation in the current environment.