International Monetary Fund: The world economy is facing tremendous challenges

According to IRNA, Reuters news agency, quoting this report of the International Monetary Fund, wrote that the adoption of fiscal contractionary policies to deal with widespread and severe inflation on the one hand and the slow growth of China’s economy on the other hand, along with the current disruption in the supply chain and Food insecurity caused by Russia’s invasion of Ukraine has marked a dark future for the global economy.

Last month, the fund lowered the global growth rate for 2023 from 2.9 percent to 2.7 percent.

In a recent article prepared to be presented at the G20 summit in Indonesia, it is stated that intermittent indicators show that the economic outlook, especially in Europe, has become darker.

According to this report, purchasing management indicators that measure service and production activities indicate the weakness of most of the G20 member economic giants and the reduction of economic activities in the midst of high inflation.

It is stated in this report: The global economy is facing tremendous challenges and the weakening economic indicators show more challenges ahead. The worsening energy crisis in Europe can harm economic growth and increase inflation; Chronic hyperinflation can also lead to higher-than-expected increases in interest rates and further contraction of the global financial situation, which itself increases the risk of a debt crisis for vulnerable economies.