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MNI: IMF Tells G20 Things Are Getting Worse, Keep Tightening

(MNI) OTTAWA

The IMF said G20 leaders should keep tightening fiscal and monetary policy to get inflation back under control even as the global economy shows more signs of tilting into recession.

"Recent high-frequency indicators confirm that the outlook is gloomier," than a month ago when the IMF cut its 2023 growth forecast to 2.7% and said nations accounting for a third of global output will contract this year or next. The blog post by Tryggvi Gudmundsson also said Europe especially is showing weakness in the fourth quarter and China is struggling with Covid restrictions and troubles in real estate.

"Despite growing evidence of a global slowdown, policymakers should continue to prioritize containing inflation, which is contributing to a cost-of-living crisis," Gudmundsson said. "Continued fiscal and monetary tightening is likely needed in many countries to bring down inflation and address debt vulnerabilities—and we do expect further tightening in many G20 economies in the months ahead." The report was prepared just ahead of a G20 summit in Bali, Indonesia.

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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