The October 2022 “World Economic Outlook” from the International Monetary Fund is titled “Countering the Cost-of-living Crisis.” The report describes the combined impact on the global economy of inflation, Russia’s invasion of Ukraine, and the lingering effects of Covid-19.
It concludes the economy worldwide is facing a broad-based slowdown.
In 2022 and 2023, the three largest economies in the world — China, Europe, and the U.S. — will all experience significant slowdowns, per the IMF.
According to the IMF’s projections, global growth will drop from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.
The IMF predicts the global inflation rate will increase from 4.7% in 2021 to 8.8% in 2022 before falling to 6.5% in 2023 and 4.1% in 2024.
McKinsey & Company periodically surveys executives across worldwide regions, industries, company sizes, and job functions. The late August 2022 survey received 1,247 responses, which McKinsey summarized in an article titled “Economic conditions outlook, September 2022.”
Concerns about inflation and rising interest rates are the top risk to respondents’ home economies, followed by erratic energy prices, geopolitical unrest, and armed conflicts.