The International Monetary Fund (IMF) has cut its global growth forecast for 2023 as economic pressures collide, from the war in Ukraine, high energy and food prices, and sharply higher interest rates.
The IMF warned on Tuesday that conditions could worsen significantly next year and said it expected more than a third of the world’s economy to contract.
“The three largest economies – the United States, China and the euro area – will continue to stall,” IMF chief economist Pierre-Olivier Gourinchas said. “In short, the worst is yet to come, and for many people, 2023 will feel like a recession.”
In its World Economic Outlook the IMF said global GDP growth next year will slow to 2.7 percent, compared to a 2.9 percent forecast in July, as higher interest rates slow the United States economy, Europe struggles with spiking gas prices and China contends with continued COVID-19 lockdowns and a weakening property sector.