The recent OPEC+ decision to cut production targets by 2 mbd from November onwards given concerns about a deteriorating economic outlook took many by surprise. However, dark clouds over the global economy are indeed gathering. The International Monetary Fund (IMF) recently updated its world economic outlook, noting a notable deceleration in GDP growth. The latest projections are for world economic activity to increase by 3.2% in 2022, down from 6% last year. This slowdown largely reflects major cooling in the biggest economies: US GDP contraction in 1H 2022, Euro area contraction in 2H 2022 and covid restrictions in China. A further slowdown in economic growth is expected next year, with global GDP anticipated to increase by 2.7%. The IMF stresses there are huge downside risks, with main sensitivities centered around further US dollar appreciation, energy, and food price shocks; ongoing tightening in financing conditions, geopolitical fragmentation, and a worsening of several property crises, as well as Covid restrictions in China.
Download the full report
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
Please Contact Us at：
media@xindemarine.com
.gif)
