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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The global economy will feel like a recession in many nations next year as growth slows and inflation remains elevated, with central banks required to raise interest rates while governments must largely stand back to avoid adding to price pressures, the IMF said Tuesday.
The global GDP forecast for next year was also reduced 0.2pp to 2.7%, slower than this year's 3.2%.Euro area growth next year was chopped 0.7pp to 0.5% amid the Ukraine war. The IMF reiterated that Federal Reserve rate hikes will slow U.S. growth to 1% next year, tightening that also boosts the risks of instability in emerging nations and financial markets.
"Downside risks to the outlook remain elevated, while policy trade-offs to address the cost-of-living crisis have become acutely challenging," the IMF said. "The risk of monetary, fiscal, or financial policy mis-calibration has risen sharply."
Central banks nonetheless must make taming inflation the top priority, the fund's outlook report said. "Raise real policy rates above their neutral level fast enough and for long enough to keep inflation and inflation expectations under control," the IMF said. "Fiscal policy also needs to support monetary policy in softening demand in economies with excess aggregate demand and overheating labor markets."
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.