The International Monetary Fund has warned that the “worst is yet to come” as it slashed its growth forecasts for next year.
In a bleak assessment of the world’s economic prospects, the IMF cut its global growth projection for next year by 0.9 percentage points to 2.3% and said high inflation, a global energy crisis and rising central bank interest rates would create the worst run of economic growth since the global financial crisis.
It added that high inflation would persist in the UK for longer than all other advanced economies.
The IMF, which made its forecast before the chancellor’s mini-Budget, said his tax cuts and energy support package had made the Bank of England’s battle against inflation more difficult.
