The International Monetary Fund has downgraded its forecasts for global economic growth this year. In an update to its World Economic Outlook, the IMF said growth will slow from 5.9% in 2021 to 4.4% in 2022.
This is half a percentage point lower for this year, compared to its forecast in October. The main reason for the downward revision are downgrades for both the US and China.
In the US, the IMF says the downgrade is reflecting "lower prospects of legislating the Build Back Better fiscal package", tighter monetary policy and continued supply shortages.
In China, it says the real estate sector has continued to retrench and there is a "weaker-than-expected recovery in private consumption".