Global growth would reportedly first drop from a projected 3.4 percent in 2022 to 2.9 percent in 2023 before rising to 3.1 percent in 2024, according to forecasts.
Economic development is still being negatively impacted by the conflict between Russia and Ukraine and the rise in interest rates by the central bank to fight inflation. The rapid spread of COVID-19 in China in 2022 hampered growth, but the recent reopening has allowed for a quicker-than-expected return. Global inflation is predicted to drop from 8.8% in 2022 to 6.60% in 2023. While the estimates for countries like the USA, Japan, Brazil, and Mexico are for moderate growth, projections for countries like China, India, the KSA, and Nigeria are for higher growth.
Unfavourable inflation data may also cause financial markets to quickly reassess their priorities, and growing geopolitical fragmentation may obstruct economic progress. Despite the problem in the cost of living, maintaining persistent disinflation remains a top issue in the majority of economies.
Read full projections: https://www.imf.org/en/Publications/WEO/Issues/2023/01/31/world-economic-outlook-update-january-2023
