IMF cuts 2023 global growth forecast to 2.7% from 2.9%

The International Monetary Fund (IMF) announced on Tuesday that it lowered the global economic growth forecast for 2023 to 2.7% from 2.9% in July's estimates, citing pressures from high energy and food cost, rate hikes, as reported by Reuters.

Additional takeaways

"Left 2022 growth forecast at 3.2%, unchanged from July, vs 6.0% global growth in the 2021-world economic outlook."

"2023 global growth could fall to 1% under downside scenario of 30% oil price jump, Chinese property disruptions, overheated labor markets and severe financial tightening."

"Boosted eurozone 2022 growth outlook to 3.1% from 2.6% in July; cut 2023 growth forecast to 0.5% from 1.2% in July."

"Cut US 2022 growth forecast to 1.6% from 2.3% in July; 2023 growth forecast unchanged at 1.0%."

"Cut China 2022 growth forecast to 3.2% from 3.3% in July; cut 2023 growth forecast to 4.4% from 4.6%."

"Global headline inflation to peak at 9.5% in Q3 2022, and to decelerate to 4.7% in Q4 2023."

"Further dollar strength can only compound the likelihood of debt distress in many emerging markets."

"Russian economy to shrink 3.4% in 2022 vs 6.0% contraction in July; 2023 contraction forecast at 2.3% vs 3.5% in July."

Market reaction

This report doesn't seem to be impacting the risk mood in a noticeable way. Ahead of Wall Street's opening bell, US stock index futures are down between 0.1% and 0.2% on the day.