Customers shop at a market in London, England. (Photo: AFP/VNA)

Global real GDP growth will slow to 3.2% in 2022 from a forecast of 3.6% issued in April, the IMF said in an update of its World Economic Outlook. It said world GDP actually contracted in the second quarter due to downturns in China and Russia. The fund cut its 2023 growth forecast to 2.9% from the April estimate of 3.6%, citing the impact of tighter monetary policy.

The IMF said it now expects the 2022 inflation rate in advanced economies to reach 6.6%, up from 5.7% in the April forecast, adding that it will remain elevated for longer than previously anticipated.

IMF chief economist Pierre-Olivier said the outlook had turned "gloomy" since April and that the world could soon be on the brink of a global recession, just two years after the last recession.