The International Monetary Fund cut its global growth forecast to 3.2 percent this year and 2.9 percent next.

The IMF also boosted inflation to 6.6 percent in advanced economies and 9.5 percent in emerging markets, nearly a full percentage point higher than previously forecast.

Fighting inflation should be a top priority, the fund's latest report says, advising central banks that have begun to tighten monetary policy to stay the course. Governments should target any spending designed to cushion the impact of inflation on the most vulnerable and offset those spending by raising taxes or cutting spending elsewhere to avoid increasing inflationary pressures.

Tighter monetary policy will inevitably incur real economic costs, but delay will only exacerbate them, the IMF wrote.

According to the IMF, the global economy contracted in the second quarter of this year due to high inflation in the US and Europe, quarantine due to COVID-19 in China and war in Ukraine.

The eurozone is now expected to grow by 2.6% this year and 1.3% next, compared to previous forecasts of 2.9% this year and 2.5% in 2023.

The Fund sees multiple risks overshadowing the horizon, including a halt in Russian gas supplies to Europe, easing inflation expectations, tightening financing conditions, a resurgence of COVID-19 outbreaks, social unrest caused by food insecurity and high energy prices, and trade restrictions.

If these risks materialize, global growth will slow further and stall in the US and Europe in 2023.