The International Monetary Fund (IMF) said on Tuesday that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast. According to the latest data, the global economy will grow by 2.7 per cent in 2023 resulting in recession in some countries.
“The worst is yet to come, and for many people 2023 will feel like a recession,” the report said.
In the past year, the global economic growth has been severely affected by the COVID-19 pandemic as well as the Russian invasion of Ukraine. With the world facing acute food and fuel shortages, the IMF said that the latest prediction is the “the weakest growth profile since 2001”, according to Reuters.
IMF Growth Forecast: 2023
USA🇺🇸: 1%
Germany🇩🇪: -0.3%
France🇫🇷: 0.7%
Italy🇮🇹: -0.2%
Spain🇪🇸: 1.2%
Japan🇯🇵: 1.6%
UK🇬🇧: 0.3%
Canada🇨🇦: 1.5%
China🇨🇳: 4.4%
India🇮🇳: 6.1%
Russia🇷🇺: -2.3%
Brazil🇧🇷: 1%
Mexico🇲🇽: 1.2%
KSA🇸🇦: 3.7%
Nigeria🇳🇬: 3%
RSA🇿🇦: 1.1%https://t.co/VBrRHOfbIE #WEO pic.twitter.com/0TDJbgSuka
— IMF (@IMFNews) October 11, 2022
The report also added the economic slowdown in China as one of the potential reasons behind the current financial crisis. With the Chinese government imposing tough restrictions on the citizens to stop the Covid infection from spreading, the economy has taken a massive hit in the past couple of years.
While major economies like the United States and China are expected to show extremely slow growth in 2023, the Indian economy is expected to grow by 6.1 per cent. If the trend holds true, India is currently enroute to becoming one of the fastest-growing economies in the world by the next year.
Also read | G7 to hold crisis talks on Russia’s bomb assault on Kyiv
Back in July, the IMF said that India can grow by 7.4 per cent in the current financial year.
“For emerging markets and developing economies, the shocks of 2022 will re-open economic wounds that were only partially healed following the pandemic,” the report said.
