IMF Trims World Growth Outlook as Risks Raise Financial Pressure

  • Bank turmoil adds to stresses from interest rates, Russia war
  • SVB failure, Credit Suisse collapse ignite stability concerns
IMF’s Pierre-Olivier Gourincha the factors behind the decision to lower its 2023 GDP growth forecast.  Source: Bloomberg
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The International Monetary Fund trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy and Russia’s invasion of Ukraine.

Gross domestic product will likely expand 2.8% this year and 3% next year, each 0.1 percentage point less than forecast in January, the fund said Tuesday in a quarterly update to its World Economic Outlook. That compares with 3.4% expansion in 2022.