IMF warns of global economic downturn due to banking crisis and lowered growth outlook.

The International Monetary Fund (IMF) has downgraded its forecast for global economic growth due to the recent banking crisis, high and persistent inflation, elevated debt levels, and Russia's war in Ukraine. The IMF now expects economic growth to slow from 3.4% in 2022 to 2.8% in 2023. The organization warns that policymakers may face difficult trade-offs in trying to tame inflation while averting a painful recession. The IMF calls for decisive action by policymakers to address gaps in supervision and regulation and improve deposit insurance programs.