The International Monetary Fund (IMF) downgraded its global economic outlook for 2023, predicting that next year “would feel like a recession” for many countries due to central banks’ measures worldwide.
The agency that brings together 190 member states, predicted that the global economy will not exceed 2.7% in 2023 versus 6% in 2021. This is due to the repercussions of the Russia-Ukraine war, chronic inflationary pressures, punitive interest rates, and the worldwide pandemic’s residual effects.
The IMF did not change the modest 2022 global growth of 3.2%.
“The worst is yet to come,” IMF head economist Pierre-Olivier Gourinchas predicted.
Each country is dealing with the fallout from the 2020 COVID-19 epidemic, which halted the global economy and forced significant government expenditure and low borrowing rates.
Central banks are drastically hiking interest rates in order to reduce inflation risk and relieve consumer supply chain pressure.