The organization, which aims to stabilize economic growth, acknowledged that Kwasi Kwarteng's tax cuts will temporarily increase growth. With Slovakia being outside of the eurozone, it anticipates that high costs will continue for a longer period in the UK. According to the IMF's most recent assessment of the global economy, inflation, which measures how the cost of living grows over time, is predicted to reach a peak in the UK before the end of the year at roughly 11.3%. It anticipates that price increases will be far higher than the Bank of England's target of 2% in each of the next two years, averaging around 9%. Although the UK economy is expected to increase the quickest among the G7 group's major economies this year, growth is only expected to reach 0.3% in the following year. The IMF criticized Mr. Kwarteng's plans for significant tax cuts in the UK, stating that they were likely to worsen inequality and add to pressures driving up prices. The IMF acknowledged that the government's mini-budget was intended to spur economic development, but warned that the tax breaks could hasten the rate of price increases that the Bank of England, the UK's central bank, is attempting to slow. The official spokesperson for the Prime Minister, Downing Street, defended the chancellor's plans, stating that they were designed to support the British people during a period of high global prices and that the IMF report illustrated the challenges that nations around the world are currently facing. As the war in Ukraine helps drive prices up globally, the IMF issued a warning that the global economy was in a downturn with "the worst yet to come." To assist people through the upheaval, it was stated that governments and central banks must cooperate on a global scale. Imagine a car with two drivers in the front, one of whom wants to turn to the left and the other to the right, each of whom has a steering wheel, said Pierre-Olivier Gourinchas of the IMF. While the other wants to spend more to support families, it is unlikely to be as successful as the central bank's attempt to cool the economy and ease price pressures. The IMF applauds the UK chancellor's decision to push forward his economic plan, in which he will outline how he intends to pay for the tax cuts and offer an unbiased assessment of the future of the UK economy. However, despite new moves by the Bank of England to attempt and stabilize financial markets, government borrowing costs on Tuesday remained relatively near to the levels observed at the height of the market turbulence last month. According to the IMF, the global economy's worst is yet to come and for many people, 2023 will seem like a recession. As a result of a longer-lasting inflationary shock brought on by Russia's invasion of Ukraine, it reduced predicted growth globally at the time. The most significant international financial institution in the world claimed that rising global interest rates and a strong dollar are increasing these pressures. Germany and Italy's economies are now expected to fall next year as a result of the direct impact of the gas shutdowns in continental Europe. The mini-budget presented by the chancellor and its fallout are not fully taken into account in the estimates; they will "complicate the fight against inflation" but "boost growth somewhat shortly." The UK's mini-budget last month was harshly criticized by the IMF, which also reiterated a broad caution about untargeted fiscal support without identifying the UK by name. It was noted that poorer households frequently spend relatively more on fuel, food, and heating than wealthier households do. All of these expenses have increased sharply as a result of restrictions on grain and energy exports following the invasion of Ukraine. Also suffering greatly are European nations that depend heavily on Russian gas. It is now expected that the German economy would shrink in 2013. The largest decline of all the countries covered in the estimates is predicted to occur in Russia's GDP, which would drop by 2.3% in 2019. She stated that countries might "lower the agony ahead of us in 2023" by engaging cooperatively during the first face-to-face meetings between the IMF and the World Bank since the outbreak. The IMF will encourage big economies to continue their efforts to lower living costs, she continued, even if doing so may have a detrimental effect on economic development.