WASHINGTON — The International Monetary Fund on Tuesday downgraded its global growth forecast for 2023 to 2.7% as the world’s largest economies continue to sputter amid widespread rate hikes aimed at reining in inflation. This marks the first time since 2000 that the IMF has predicted global economic growth of less than 3% for the following year. “More than a third of the global economy will contract this year or next,” the report said.

“The three largest economies — the United States, the European Union, and China — will continue to stall,” said the report. “In short, the worst is yet to come, and for many people 2023 will feel like a recession.” The cut of 0.2 percentage point from July in the latest World Economic Outlook makes the IMF’s downward revision over the past six months bigger than the one it made during the global financial crisis.

Source: Nikkei Asia