The Globe and Mail reports in its Wednesday, Oct. 12, edition that the International Monetary Fund has cut its global growth forecast and warned of potential financial market disorder, but it is advising central banks to stay the course on monetary policy tightening despite the economic pain it will cause. The Globe's Mark Rendell writes that the IMF's biannual World Economic Outlook forecasts a big slowdown in growth next year as the global economy struggles with high inflation and rapidly rising interest rates, geopolitical turmoil and ongoing disruptions caused by COVID-19, particularly in China. IMF economic counsellor Pierre-Olivier Gourinchas wrote: "The three largest economies -- the United States, the European Union, and China -- will continue to stall. In short, the worst is yet to come, and for many people 2023 will feel like a recession." The IMF maintained its forecast of 3.2-per-cent global growth for this year but cut its projection for 2023 to 2.7 per cent, which would be the weakest growth since 2001, excluding the depths of the 2008 financial crisis and the early phase of the pandemic. It said that about a third of the world economy will experience a contraction this year or next year.
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