We collect cookies to analyze our website traffic and performance; we never collect any personal data.Cookies Policy
Accept
Michigan Post
Search
  • Home
  • Trending
  • Michigan
  • World
  • Politics
  • Top Story
  • Business
    • Business
    • Economics
    • Real Estate
    • Startups
    • Autos
    • Crypto & Web 3
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Beauty
    • Art & Books
  • Health
  • Sports
  • Entertainment
  • Education
Reading: I.M.F. Forecasts U.S. and China Slowdowns Will Hold Back Growth
Share
Font ResizerAa
Michigan PostMichigan Post
Search
  • Home
  • Trending
  • Michigan
  • World
  • Politics
  • Top Story
  • Business
    • Business
    • Economics
    • Real Estate
    • Startups
    • Autos
    • Crypto & Web 3
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Beauty
    • Art & Books
  • Health
  • Sports
  • Entertainment
  • Education
© 2024 | The Michigan Post | All Rights Reserved.
Michigan Post > Blog > Business > I.M.F. Forecasts U.S. and China Slowdowns Will Hold Back Growth
Business

I.M.F. Forecasts U.S. and China Slowdowns Will Hold Back Growth

By Editorial Board Published January 25, 2022 4 Min Read
Share
I.M.F. Forecasts U.S. and China Slowdowns Will Hold Back Growth
25global econ brf facebookJumbo v2

The pandemic has changed the way people in many parts of the world spend their money, shifting funds that might have been used for dining, travel and entertainment to goods they can play with, sit on or consume at home. That increased demand, combined with persistent difficulties in moving goods from one city or continent to another, skyrocketing energy prices and labor shortages, has driven up costs.

Some of those pressures are expected to wane toward the end of the year — but not everywhere. “In the United States the story is different,” the fund noted. The exit of so many people from their jobs has created more persistent labor shortages and driven up wages much more than in other countries. Americans’ high level of spending has also created some of the worst supply chain disruptions.

The U.S. Federal Reserve has made clear that its primary focus has shifted from stimulating the economy during the pandemic to fighting inflation. The bank, which is set to release its next policy statement on Wednesday, is raising interest rates and reeling in its purchases of bonds that ensured money would continue to flow through the economy. Other central banks, including those in Mexico and Brazil, are taking similar actions.

The strategy is to discourage people from borrowing money to buy a car or invest in a business and ratchet back demand for products that are in short supply. Creeping interest rates, though, risk not only slowing economic growth but burdening poorer nations with even bigger debts far into the future.

“If interest rates rise more sharply, that then puts extra strain on vulnerable developing countries which have most of their debt in dollars,” said Creon Butler, research director at Chatham House, a London research organization. That means governments must use scarce resources to repay bulging loans instead of adding hospital beds or feeding hungry children.

Inflation F.A.Q.


Card 1 of 6

What is inflation? Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

What causes inflation? It can be the result of rising consumer demand. But inflation can also rise and fall based on developments that have little to do with economic conditions, such as limited oil production and supply chain problems.

Is inflation bad? It depends on the circumstances. Fast price increases spell trouble, but moderate price gains can lead to higher wages and job growth.

Can inflation affect the stock market? Rapid inflation typically spells trouble for stocks. Financial assets in general have historically fared badly during inflation booms, while tangible assets like houses have held their value better.

The slowdown in China, which is both a major supplier and buyer of goods traded with other countries, is also setting off reverberations around the world. The once exuberant real estate market has plunged. The government has imposed the world’s most stringent restrictions and lockdowns to contain Covid, and unexpected power outages have further hindered industrial production.

Growth in the euro area was revised down 0.4 percentage points to 3.9 percent, but for some countries, the drop was much steeper. Clogs in the supply chain, especially those affecting the auto industry, prompted the I.M.F. to estimate that growth in Germany — the largest economy in Europe — would decline by 0.8 percentage points, twice as much as the average of all countries that use the euro.

TAGGED:American Rescue Plan (2021)ChinaCoronavirus (2019-nCoV)Credit and DebtInflation (Economics)Interest RatesInternational Monetary FundInternational Trade and World MarketSupply ChainThe Washington MailUnited StatesUnited States Economy
Share This Article
Facebook Twitter Email Copy Link Print

HOT NEWS

Appreciation: Associates bid farewell to Rolando ‘Veloz’ Gonzalez, an L.A. Spanish-language radio pioneer

Appreciation: Associates bid farewell to Rolando ‘Veloz’ Gonzalez, an L.A. Spanish-language radio pioneer

Sports
July 6, 2025
Tyler Webb sentenced to 9 years imprisonment after persuading sufferer to try suicide on-line

Tyler Webb sentenced to 9 years imprisonment after persuading sufferer to try suicide on-line

A 23-year-old man who satisfied his sufferer to try suicide and critically self-harm on-line has…

July 6, 2025
The Wellness Lies I Believed in My 20s—and the Truths I Reside by Now

The Wellness Lies I Believed in My 20s—and the Truths I Reside by Now

In my 20s, “wellness” turned a blueprint for learn how to dwell—structured, prescriptive, and endlessly…

July 6, 2025
UV Security Month: Elevating consciousness of pores and skin most cancers dangers

UV Security Month: Elevating consciousness of pores and skin most cancers dangers

LANSING, Mich. (WLNS) — July is UV Security Consciousness Month, and well being specialists are…

July 6, 2025
British fintech Zilch on hunt for abroad bid targets

British fintech Zilch on hunt for abroad bid targets

Zilch, the buyer lender which has grow to be considered one of Britain's fastest-growing fintech…

July 6, 2025

YOU MAY ALSO LIKE

Digital pockets supplier Hyperlayer closes in on £30m funding increase

A British fintech which counts Customary Life amongst its key shoppers is near finalising one of many trade's largest funding…

Business
July 6, 2025

Fragrances retailer Bodycare traces up debt funding bundle

A well being and wonder retailer based on a Lancashire market stall greater than half a century in the past…

Business
June 23, 2025

Industrial technique targets short-term ache for long-term acquire

The federal government's industrial technique goals to harness one of the best of British enterprise, from automotive to video gaming…

Business
June 23, 2025

Plans to chop power prices for 1000’s of companies introduced

Plans to chop power prices for 1000's of companies have been introduced as a part of the federal government's long-awaited…

Business
June 23, 2025

Welcome to Michigan Post, an esteemed publication of the Enspirers News Group. As a beacon of excellence in journalism, Michigan Post is committed to delivering unfiltered and comprehensive news coverage on World News, Politics, Business, Tech, and beyond.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • Accessibility Statement

Contact Us

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 | The Michigan Post | All Rights Reserved

Welcome Back!

Sign in to your account

Lost your password?