The global GDP is expected to slow from last year’s 6.1 percent to 3.2 percent this year and 2.9 percent next year, the International Monetary Fund (IMF) has said.

The figures are down 0.4 and 0.7 percentage points from the IMF April World Economic Outlook.

The IMF said the projections reflect stalling growth in the world’s three largest economies the United States, China and the Euro area with important consequences for the global outlook.

Higher-than-expected inflation, especially in the US and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid Covid-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine. As a result, global output contracted in the second quarter of this year.

The outlook has darkened significantly since April, said Pierre-Olivier Gourinchas, Economic Counsellor and the Director of Research of the IMF, in a press conference, adding that the world may soon be teetering on the edge of a global recession, only two years after the last one.

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