IMF downgrades economic outlook for next year by 2.7%... "The worst is yet"

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The International Monetary Fund and the International Monetary Fund (IMF) lowered their forecasts for global economic growth next year.

The IMF said "the worst has not yet come" and storm clouds are gathering.

The first news, reporter Kim Yong-cheol reports.

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The International Monetary Fund (IMF) announced that it has downgraded its global economic growth forecast for next year to 2.7% in consideration of soaring prices, austerity measures, and COVID-19.

This is a 0.2 percentage point downward revision after lowering the growth forecast at the beginning of the year at 3.8% in April and July.

As a result, the economic growth forecast for next year has been lowered by 1.1 percentage points from the beginning of the year.

The global growth forecast for this year was maintained at 3.2%. 

The International Monetary Fund (IMF) says about a third of the global economy faces negative growth for the second straight quarter, meaning a technological recession.

[Pierre Gochinchas/IMF Chief Economic Analyst: The economic slump in the three major economies, the US, the Eurozone, and China, will continue.

The worst never came.

Many people will feel the recession in 2023.]

By country, we kept the US growth forecast for next year at 1.0%, but lowered it by 0.7 percentage points for the euro area and 0.2 percentage points for China.

Korea's economic growth forecast for this year is 2.6%, 0.3 percentage points higher than the July forecast, and next year's growth rate is predicted to be 2.0%, 0.1 percentage point lower than the previous forecast.

The IMF pointed out that high inflation not seen in decades, austerity in most regions, Russia's invasion of Ukraine and the never-ending COVID-19 pandemic are putting a great strain on the economic outlook.

Global inflation will rise to 8.8% this year and then ease from next year, but could last longer due to energy and food price shocks, he added.

The International Monetary Fund (IMF) predicted that the recession could be felt in earnest next year, saying the worst had not come and storm clouds were gathering.