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22:23 economy into sharper downturn than needed to weaken price pressures, while stopping too soon would allow high inflation to become entrenched and require even more rate increases. The risks of doing too little are the more worrisome, Ms. Koeva Brooks said. "So doing the right thing now would prevent that scenario." The Fed's rate rises have fueled a sharp appreciation of the U.S. dollar against most other currencies, which, in turn, has inflated the costs of imports and debt service for many countries. Many emerging-market and developing nations, in particular, are struggling. The surging dollar and war in Ukraine are boosting their bills for imported food and energy, while their economies have yet to recover from pandemic-induced damages. Roughly 60% of the world's poorest nations are in or at risk of debt stressunable to meet their financial obligationsand many governments and businesses are unable to raise capital in financial markets to refinance and raise funds needed to keep their operations running. In China, strict Covid-19 lockdown policies have curbed its economic growth, particularly during the second quarter of 2022. Its overextended property sector, which represents one-fifth of its economy, according to the IMF, is slowing rapidly. China's slump is expected to add to hiccups in global supply chains and a slowdown in global trade, the IMF said. The IMF said the global economy shrank modestly during the second quarter, by 0.1 percentage point, with output falling in China, Russia and the U.S., as well as in Eastern European countries affected by the war in Ukraine. The U.S. contraction reflects the Fed's rate increases as well as the end of tax and spending policies that had propped up household incomes and bolstered businesses during the pandemic, the IMF said. Write to Yuka Hayashi at Yuka.Hayashi@wsj.com 00 Dashboard Calendar Notifications Inbox