In the latest World Economic Outlook released by the IMF, the global economic growth forecast for 2023 has been raised to 2.9%.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The International Monetary Fund (IMF) slightly raised its 2023 global economic growth outlook on Tuesday (31st), mainly due to the surprising resilience of demand in the United States and Europe, falling energy costs, and Beijing's abandonment of strict epidemic prevention measures After restrictions, the Chinese economy reopened.

According to Reuters, the latest World Economic Outlook released by the IMF stated that the global economic growth is expected to reach 2.9% in 2023, an improvement from the 2.7% predicted in October last year, and a slowdown from 3.4% in 2022. And warned that the global economy could easily fall into recession.

For 2024, the IMF forecasts that global growth will accelerate to 3.1 percent as the full impact of central bank rate hikes slows demand.

Please read on...

Chief economist Pierre-Olivier Gourinchas pointed out that the risk of recession has subsided, central banks have made progress in controlling inflation, but more work needs to be done to curb prices, the war in Ukraine has further heated up, and China's fight against the epidemic The war may bring new disturbances.

Looking ahead to 2023, Gurinchas believes that the world must brace for surprises, but this is likely to represent a turning point where growth bottoms out and inflation then falls.

In its 2023 GDP (gross domestic product) forecast, the IMF said it now expects the U.S. economy to grow by 1.4%, up from 1% forecast last October.

The report mentioned that last year's Q3 was stronger than expected consumption and investment, a strong labor market and consumer balance sheets.

The outlook for Europe is also more positive than originally expected, with the euro zone expected to grow by 0.7% in 2023 after growth of 3.5% in 2022, with easing energy prices helping the region.

Britain is the only major developed economy that the IMF predicts will slip into recession this year, with GDP expected to fall by 0.6 percent as households struggle to cope with rising living costs, including energy and mortgages.

The IMF raised China's 2023 growth outlook sharply from 4.4% in October to 5.2%. China's previous strict zero-clearing policy dragged economic growth to 3% in 2022, which is lower than the global average growth rate and nearly half of the growth rate. One of the worst performances of the century.

The report also mentioned downside risks to the global economy, including widespread outbreaks in China, a worsening real estate crisis, inflation in various countries, and central bank interest rate hikes.

The IMF said that the escalation of the war in Ukraine may further push up energy and food prices, and if the next winter weather is severe, it will also help increase energy prices.

While headline inflation has fallen in many countries, markets will be vulnerable to volatility if core inflation data does not fall and financial conditions ease prematurely.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news