The International Monetary Fund raised concerns about the global economy just before the G-20 meeting. The IMF says that the world economy seems to be weakening. The global body said that the situation seems to be worse than what was estimated last month. According to the IMF, this has come to the fore in the Purchasing Managers Index of the last few months. Not only this, the IMF says that the monetary policies that have been tightened by the economies of the world and the increase in inflation have created such situations. In its estimate, the IMF has said that China's economy has shown a slowdown and the supply chain has been affected.
Apart from this, the supply of food grains in the world has also been affected due to the war between Russia and Ukraine. Due to this, such conditions are being created that there is a slowdown in the global economy. Last month, the global institute announced to reduction in the world's economic growth forecast from 2.9 percent to 2.7 percent in 2023. In a blog ahead of the G20 Leaders' Summit, the IMF said that the signs about the global economy are talking of a slowdown. Especially in Europe, the situation of recession remains. Its effect will be seen in other parts of the world as well.
The IMF says that manufacturing and services activity has weakened. The situation is more or less similar in the big 20 economies of the world. On the one hand, there is an increase in the inflation rate, while there is a decrease in demand and production. The IMF says that the crisis facing the global economy is worrying. It seems that the times ahead are going to be challenging. Not only this, but the energy crisis in Europe has also worked to reduce growth and has increased inflation. The global body said that if inflation continues like this, then the policy rate will increase across the world and this can make the economic situation difficult.
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