Omicron: inflation and health uncertainty weigh on global growth

The IMF is revising its forecasts for this year downwards, in particular for the two heavyweights of the planet, China and the United States. Omicron is also holding back activity in Europe.

The economic panorama is darkening with the still very active Omicron wave and the acceleration of inflation. “The global economy starts 2022 in a weaker position than expected,” points out the International Monetary Fund in its new forecasts. Its economists have revised down the growth figure for the planet for this year, to 4.4% against 4.9% expected last October. In question, a deceleration of the two heavyweights, the United States and China, which together represent a very large third of world GDP.

Several factors explain the slowdown in American activity (+4% instead of 5.2%). This is due to Joe Biden’s major support plan Build Back Better (build back better) limited in its ambitions, the monetary tightening of the Fed (read below) to stem the runaway prices and supply shortages. . China, for its part, is being held back by its “zero Covid” health policy – ​​the repeated confinements that…

This article is for subscribers only. You have 77% left to discover.

Cultivating your freedom is cultivating your curiosity.

Keep reading your article for 1€ the first month

Already subscribed? Login


Leave a Reply

Your email address will not be published. Required fields are marked *