IMF warns that the global economy’s worst phase is yet to come

• The International Monetary Fund (IMF) has warned that as the crisis in Ukraine drags on and prices rise, “the worst is yet to come” for the global economy.
• The organization, which aims to stabilize the global economy, has revised downward its estimates of economic growth as a result of Russia’s invasion of Ukraine.
• The UK is expected to grow by 0.3% next year, coming to a virtual stop.

The International Monetary Fund (IMF) has warned that as the crisis in Ukraine drags on and prices rise, “the worst is yet to come” for the global economy.

It stated that “for many people, 2023 will seem like a recession” in its most recent assessment of the state of the world economy.

The organization, which aims to stabilize the global economy, has revised downward its estimates of economic growth as a result of Russia’s invasion of Ukraine.

The UK is expected to grow by 0.3% next year, coming to a virtual stop.

That represents a considerable decrease from the 3.6% rate of growth for the UK economy anticipated in 2022 and a 0.2% decline from the IMF’s July prediction.

However, the latest mini-budget presented by the chancellor is not taken into account in the renowned financial institution’s study.

The IMF criticized the government’s proposals and warned that the measures are likely to exacerbate the cost-of-living crisis after Kwasi Kwarteng presented plans for significant tax cuts.

The IMF said the measure was likely to worsen inequality and add to pressures pushing up prices in an uncharacteristically blunt statement.

One of the main ways the IMF helps to stabilize the world economy is by serving as an early warning system.

It acknowledged that the government’s package was intended to spur economic growth, but warned that the tax cuts would hasten the rate of price increases, which the UK central bank is attempting to slow.

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