The International Monetary Fund has warned that the global economy will grow more slowly this year than previously forecast, with the UK sitting among the G7 group of the world’s richest economies.
The fund has lowered its expectations for global gross domestic product (GDP) growth to 3.2%, from an earlier estimate in April of 3.6%. The figure is nearly half the 6.1 percent rate recorded last year, when output rebounded as Covid-19 vaccination programs allowed economies to restart.
The IMF expects demand to be quelled by aggressive action by the biggest central banks to raise the cost of borrowing to control inflation, which is approaching double digits in the UK, US and eurozone.