The global economy will continue to cool down next year. A third of the global economy 2023 is likely to slip into recession by 2023, according to the International Monetary Fund’s (IMF) new World Economic Report, published in Washington today.
The global economy 2023 will continue to cool down next year. A third of the global economy 2023 is likely to slip into recession by 2023, according to the International Monetary Fund’s (IMF) new World Economic Report, published in Washington today.
The most important economic regions are weakening
At the beginning of the consultations of its member states this week in the US capital, the IMF again lowered the forecast for 2023. The global economy 2023 is only expected to grow by 2.7 percent, compared to 2.9 percent expected in July. An increase of 3.2 percent is still expected for 2022. Compared to 2021 with growth of 6.0 percent, these are meager values.
The most important economic regions are all weakening. Europe is particularly affected by the war in Ukraine. Gas prices have more than quadrupled since 2021. In the US, consumption is no longer driving the economy as usual, and in China restrictions and tensions in the real estate market are having a negative impact.
Inflation expected to peak soon
The IMF expects inflation, which is currently at multi-decade highs in many countries, to peak in late 2022. However, it will remain at a significantly higher level for a longer period of time. Global consumer prices are likely to rise by a whopping 8.8 percent in 2022, and still by 6.5 percent in 2023. The previous estimates were thus adjusted upwards again.
4.1 percent are then expected in 2024. Emerging and developing countries will be hit harder than industrialized nations. For them, the strong dollar, which is at its highest level in two decades, is a big problem.