Washington DC, 8 August 2022 (TDI): According to the International Monetary Fund (IMF), the three major economies in the world; the US, China, and the Euro Area, are stalling. It is going to have a significant impact on the future of the world.

The war in Ukraine and the ongoing effects of the pandemic are having a negative and unclear impact on the world economy.

Further, IMF adds that it is triggering a situation the inflation rate is higher than expected in the major economies of the US and European Countries.

China’s economy has also slowed down due to the Covid-19 outbreak and lockdowns. The outbreak of war in Ukraine has also put a negative spillover on these economies.

According to the data of IMF, the growth declines from 6.1 percent last year to 3.2 percent this year and 2.9 percent the following year, which is a 0.4 and 0.7 percentage point decrease from April.

IMF
Latest World Economic Outlook Growth Projection by IMF
IMF Statistics on Economic Growth of Major Countries

Further, according to the statistics, reduced household purchasing power and a stricter monetary policy in the United States will cause growth to fall to 2.3 percent this year and 1 percent the next year.

In China, more lockdowns and the worsening real estate crisis slowed growth this year to 3.3 percent, the lowest level in more than four decades, excluding the pandemic.

Additionally, due to the effects of the conflict in Ukraine and stricter monetary policy, growth in the Euro area is downgraded to 2.6% this year and 1.2% in 2023.

According to upward revisions of 0.9 and 0.8 percentage points by IMF, respectively, inflation is expected to reach 6.6 percent in advanced economies and 9.5 percent in emerging market and developing economies this year.

The expectation is that it will continue to be high for a longer period of time. Many economies have seen an increase in inflation as a result of supply chain disruptions, historically tight labor markets, and cost pressures.

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