Commentary
The latest International Monetary Fund (IMF) global economic outlook has just been published and, like all of them, it has many interesting aspects.
It acknowledges the economic slowdown in many economies and has dramatically increased the Fund’s inflation estimates. Global growth is now “projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.” Estimates for 2022 of inflation projections have risen to “5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies—1.8 and 2.8 percentage points higher than projected last January.”
The IMF highlights the reality of poor growth and massive inflation. And why such poor growth and high inflation? They’re due, in no small part, to the previous recommendations of the IMF to spend without control and monetize debt with central bank money supply growth.
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