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G20 Countries Tightened Their Monetary Policies in May 2022, Global Economic Outlook Revised Downward

Urmat K. Dzhunkeev – Junior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Yury N. Perevyshin – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel V. Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute for Economic Policy; Director of Center for Central Banks Studies of the Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria I. Chembulatova – Junior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The UN and the European Commission have revised downward the global GDP growth estimate to 3.1%–3.2% in 2022, a decrease compared with the IMF outlook released in April (3.6%). The economic growth outlooks for China and the US in 2022 were lowered to 4.2%–4.6% and 2.4%–2.9%, respectively. At the same time, the rate of inflation keeps growing and the monetary authorities of all G20 developed countries which held meetings in May took a decision to tighten their monetary policies. The US Federal Reserve declared that they were going to reduce the balance by $47.5 bn a month starting from June. The central banks of India, Brazil, Mexico and South Africa raised interest rates. At its extraordinary meeting in May, the Central Bank of Russia reduced the key rate by 3 p.p. to 11% on the back of ebbing of inflationary pressures because of sagging demand, appreciation of the exchange rate of the Russian ruble and a decline in inflation expectations.

Key words: world economy, growth rates, forecast, monetary policy, UN, European commission.

JEL-codes: C53, C54, E52, E58.