IMF has lowered Chinas growth expectations this year to 3.3%

International Monetary FundOrganization (IMF) is expected to slow from 8.1%last year from 8.1%to 3.3%in 2022, and the previous expectations will increase by 4.4%this year.

According to the Wall Street Journal, IMF also said on Tuesday (July 26) that "sealing control plus the global supply chain disturbance and the decline in domestic expenditure are weakening the demand for goods and services of Chinese trading partners" "Essence

IMF and describe the impact of China's economic slowdown is global.Affected by strict epidemic prevention and controlling control and the deterioration of the real estate crisis, the Chinese economy has slowed sharply this year. The real estate crisis not only affects real estate sales, but also affects real estate investment.

It is also reported that the IMF is currently expected to increase by 2.3%this year and will increase by 1%in 2023.In contrast, the US economy increased by 5.7%in 2021.In April this year, IMF expects that the US economy will increase by 3.7%this year, and will increase by 2.3%in 2023.The decline is expected to reflect the powerful inhibitory effect of rising prices and the potential impact of the Fed's tightening monetary policy on private consumption.

In addition, due to the rise in energy prices and weakening consumer confidence, the negative impact of the Ukrainian war on the economy of European countries is also greater than earlier.The lingering supply chain dilemma and the rising investment cost also put pressure on the European manufacturing industry.IMF has lowered economic growth in the euro zone in 2022 and 2023 to 2.6%and 1.2%, respectively, and is expected to be 2.8%and 2.3%in April.

"This year and next, the United States, China, and the euro area will have economic slowdown," said Pierre-Olivier Gourinchas, the chief economist of IMF."These three largest economies in the world are stagnant, and of course they will be reflected in the global economic situation."

In this context, IMF expects that global economic growth this year will slow to 3.2%, 2021To grow 6.1%.IMF has previously lowered the expectations of economic growth in 2022 many times. The expectations in October last year were 4.9%, 4.4%in January this year, and 3.6%in April.

IMF is expected to slow down to 2.9%in 2023, which is significantly slower than the 3.6%forecast in April.

IMF also warned that the actual situation may be worse, and it listed a series of negative risks, including the sudden stop in Europe to import natural gas from Russia.The debt crisis and the outbreak of the crown disease.IMF said that Western democracy is increasingly serious and the geopolitical differences between Russia and China, and may also hinder global trade and economic policy cooperation.