Global Economic Development: Worsening forecasts

Abstract

In July, the IMF, the European Commission, and the Asian Development Bank updated
their previous world economic development forecasts. In the updated IMF forecast,
the global GDP growth rate for 2022 is reduced to 3.2% because of a slowdown in
the movement of that indicator in the largest G20 economies. At the same time, for a
number of G20 countries (Brazil, Indonesia, South Africa, and Russia) the projections
for 2022 have been improved due to rising prices for energy and some metals; and
in the case of Russia, also due to the effective measures designed to stabilize its
financial sector. The forecasts are also deteriorating in view of the monetary policy
tightening by the monetary authorities across a considerable majority of G20 countries in response to the acceleration of inflation.

Keywords: Global economy, G20, economic forecasts,

JEL Classification: E5, E51, E52