The International Monetary Fund has warned that a "sharp and unusual" slowdown in China's economy will stall growth in Asia.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The International Monetary Fund has warned that a "sharp and unusual" slowdown in China's economy will stall Asian growth by the end of next year, dampening an already bleak global outlook.

The global economic outlook has deteriorated this year as countries face higher living costs, tighter financial conditions and increased economic uncertainty following the Ukraine war, Agence France-Presse reported.

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Asia remains a relative bright spot compared with the rest of the world, according to the IMF's Regional Economic Outlook, but growth in the region has been hampered by China's economy, a draconian zero-virus policy and a crisis in the real estate sector.

Earlier this month, the IMF downgraded its 2022 growth forecast for China to 3.2 percent, the slowest growth in 40 years.

The new report cut Asia's growth forecast for this year to 4 percent, down 0.9 percentage points from the April forecast.

The IMF expects China to grow to 4.4 percent next year and Asia to 4.3 percent, still well below the roughly 5.5 percent average of the past 20 years.

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