A new International Monetary Fund report suggests that the economic hiccups roiling American politics are actually being felt worldwide and probably have little or nothing to do with President Joe Biden’s leadership. Biden certainly isn’t blameless for at least a portion of the nation’s current inflationary spiral, but the monetary fund’s report makes clear that the entire world would be in economic turmoil regardless.
Global annualized inflation ranges between 5.7% and 8.7% — suggesting that the United States, at 7% inflation, is far from alone in feeling the strains of the post-pandemic recovery. Adding to those global woes are shortages of petroleum and grains posed by Russia’s invasion of Ukraine. The problems are likely to get worse before they get better, according to the World Economic Outlook report released last week.
“Economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest,” the report says. Global economic growth rates, humming at 6.1% in 2021, could drop to around 3.7% this year and next because of impacts from the Ukraine war.
