On Jan 31, the IMF updated its World Economic Outlook (WEO) forecast for global growth to 2.9% in 2023. This is still a decline from the 3.4% growth in 2022, but marks an improvement over its initial prediction of 2.7% growth this year, with warnings that the world could easily tip into recession.
The global economy is poised to slow in 2023 before rebounding next year, as growth remains weak by historical standards, with the fight against inflation and Russia’s war in Ukraine continuing to weigh on activity.
Despite these headwinds, the outlook for the year ahead is less gloomy than what the International Monetary Fund (IMF) initially forecasted in October 2022. This year could represent a “turning point”, with growth bottoming out and inflation declining, says IMF economic counsellor and director of research Pierre-Olivier Gourinchas during a press briefing in Singapore.
