Surging inflation and severe slowdowns in the United States and China prompted the IMF to downgrade its outlook for the global economy this year and next, while warning Tuesday that the situation could get much worse.

The IMF's latest World Economic Outlook cut the 2022 global GDP estimate to 3.2 percent, four-tenths of a point lower than the April forecast, and warns of a rising chance of recession.

"Several shocks have hit a world economy already weakened by the pandemic," including the war in Ukraine which has driven up global prices for food and energy, prompting central banks to raise interest rates sharply.

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