ID :
657440
Wed, 04/12/2023 - 02:27
Auther :
JIJI
Shortlink :
https://oananews.org//node/657440
The shortlink copeid

IMF Cuts 2023 Global Growth Outlook to 2.8 Pct

   Washington, April 11 (Jiji Press)--The International Monetary Fund said Tuesday it has lowered its global economic growth projection for 2023 to 2.8 pct, down 0.1 percentage point from its January forecast, amid credit concerns triggered by U.S. banking turmoil.

   For 2024, the IMF lowered its global growth estimate by 0.1 point to 3.0 pct.

   Under a plausible alternative scenario assuming tighter credit conditions, 2023 global growth is projected at 2.5 pct, the IMF said. In that case, economic growth in Japan, the United States and Europe will be about 0.4 point lower than in the baseline scenario, it said.

   The IMF expects that the banking turmoil will put pressure on a global economy that is recovering from the COVID-19 pandemic. If the turmoil worsens, the global economy might slow down even further, according to the IMF.

   The IMF's chief economist, Pierre Olivier Gourinchas, warned that there is a major downside risk to the economy due to the financial turmoil.

   A sharp tightening of global financial conditions "would precipitate large capital outflows, a sudden increase in risk premia, a dollar appreciation in a rush to safety, and major declines in global activity," Gourinchas said, noting that in such a severe downside scenario, global growth could slow to 1 pct this year.

   The IMF cut its 2023 economic growth forecast for Japan by 0.5 point to 1.3 pct, partly reflecting sluggish capital investment in the fourth quarter of last year. The 2024 growth projection was raised by 0.1 point to 1.0 pct.
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