{"id":125065,"date":"2022-02-04T20:59:23","date_gmt":"2022-02-04T20:59:23","guid":{"rendered":"https:\/\/fin2me.com\/?p=125065"},"modified":"2022-02-04T20:59:23","modified_gmt":"2022-02-04T20:59:23","slug":"imf-chief-explains-why-she-thinks-inflation-will-end-in-2023","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/imf-chief-explains-why-she-thinks-inflation-will-end-in-2023\/","title":{"rendered":"IMF chief explains why she thinks inflation will end in 2023"},"content":{"rendered":"<p><cite>London (CNN Business)<\/cite>The pandemic will continue to stoke uncertainty and inflation in its third year, undermining the global recovery from the coronavirus and pushing total economic losses toward $14 trillion.<\/p>\n<p>That&#8217;s according to the International Monetary Fund, which on Tuesday slashed its global growth forecast for 2022 by half a percentage point to 4.4%. The group said the world&#8217;s two largest economies, the United States and China, would grow more slowly than it predicted in October.<br \/>\nThe IMF sees America&#8217;s economic output increasing 4% this year after rising by 5.6% in 2021. It shaved 1.2 percentage points off its previous forecast due to &#8220;lower prospects&#8221; that Congress will pass President Joe Biden&#8217;s Build Back Better economic plan, lingering supply chain disruption and the rising chance of aggressive action by the Federal Reserve to rein in inflation.<\/p>\n<ul><\/ul>\n<p>In China, economic growth for 2022 is now pegged at 4.8%, 0.8 percentage points lower than previously expected and a marked slowdown from the 8.1% growth achieved in 2021. The IMF pointed to the ongoing pullback in the country&#8217;s huge real estate sector and a &#8220;weaker-than-expected&#8221; recovery in personal spending.<\/p>\n<ul><\/ul>\n<p>The IMF now expects the pandemic to have cost the world $13.8 trillion in lost economic output by the end of 2024. While advanced economies are expected to return to their pre-pandemic trajectories this year, that&#8217;s not the case for &#8220;several emerging markets and developing economies,&#8221; which are still poised to suffer &#8220;sizable output losses.&#8221;<\/p>\n<p>&#8220;The last two years reaffirm that this crisis and the ongoing recovery is like no other,&#8221; Gita Gopinath, the IMF&#8217;s first deputy managing director, said in a blog post. &#8220;Policymakers must vigilantly monitor a broad swath of incoming economic data, prepare for contingencies, and be ready to communicate and execute policy changes at short notice.&#8221;<br \/>\nRising prices present a major challenge. The IMF revised up its estimates for<strong> <\/strong>global inflation, predicting that &#8220;elevated price pressures [are] expected to persist for longer.&#8221;<br \/>\nIt now sees consumer prices rising 3.9% in advanced economies this year and 5.9% in emerging market and developing economies \u2014 sharper increases<strong> <\/strong>than were recorded in 2021, when consumer prices rose 3.1% and 5.7%, respectively.<br \/>\nInflation in advanced economies is expected to fall back toward 2%, the target for most major central banks, in 2023. But the IMF said that a number of conditions will need to be met.<br \/>\nAssuming expectations for inflation don&#8217;t get out of hand and &#8220;the pandemic eases its grip, higher inflation should fade as supply chain disruptions ease, monetary policy tightens, and demand rebalances away from goods-intensive consumption towards services,&#8221; the IMF said.<\/p>\n<ul><\/ul>\n<p>The organization emphasized that its forecast is &#8220;subject to high uncertainty.&#8221; It&#8217;s on alert for new variants of the coronavirus that could prolong the pandemic, fresh damage to supply chains due to China&#8217;s policy of suppressing all Covid outbreaks, and &#8220;higher inflation surprises&#8221; in the United States that could force the Fed to be even more aggressive with interest rate hikes.<br \/>\nIt also cited &#8220;rising geopolitical tensions and social unrest&#8221; as risks to the outlook. Western countries are currently engaged in a high-stakes standoff with Russia to avert an invasion of Ukraine.<br \/>\nSource: <a href=\"https:\/\/edition.cnn.com\/2022\/01\/25\/economy\/imf-world-economic-outlook\/index.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>London (CNN Business)The pandemic will continue to stoke uncertainty and inflation in its third year, undermining the global recovery from the coronavirus and pushing total [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":125064,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IMF chief explains why she thinks inflation will end in 2023 - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/imf-chief-explains-why-she-thinks-inflation-will-end-in-2023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF chief explains why she thinks inflation will end in 2023 - 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