Global Economy

International Monetary Fund warns ‘worst is yet to come’ as efforts to slow inflation raise risks

One third of global economy may tip into contraction next year, IMF warns

The warning comes as finance and central bank chiefs gather in Washington for the lender’s annual meetings. Picture: Getty

The International Monetary Fund has warned of a worsening outlook for the global economy, highlighting that efforts to manage the highest inflation in decades may add to the damage from the war in Ukraine and China’s slowdown.

The IMF cut its forecast for global growth next year to 2.7 per cent, from 2.9 per cent seen in July and 3.8 per cent in January, adding that it sees a 25 per cent probability that growth ...