World Economic Outlook

News

• The latest update on the world economic outlook has been released.

Highlights

Global Economy

• The global economy has weathered recent challenges, including the collapse of banks in the United States and Switzerland.

IMF Projections

• The IMF projects a global economic expansion of 3% in 2023, reflecting a 20 basis points upgrade.
• Concerns and risks continue to persist despite the projected growth.

• Chief economist Pierre-Olivier Gourinchas advises caution due to existing challenges.
• Risks remain tilted downwards, posing potential threats to the economic outlook.

Two Largest Economies

United States

• The United States economy has slowed down considerably and faces uncertainty amid global and domestic headwinds.
• The pandemic-era surpluses have depleted due to cash transfers during COVID-19 and a cost-of-living crisis.

China

• China’s economy has also experienced a considerable slowdown and faces uncertainty from global and domestic factors.
• The post-reopening rebound has fizzled due to a contraction in the real estate sector, weakening consumption, and slumping overseas export demand.

Euro Area

• The Euro area has been impacted by a Ukraine-war induced gas price spike and a decelerating momentum in key economies such as Germany and France.
• Eurozone business output experienced its fastest rate fall in eight months, raising concerns about the possibility of a deeper downturn in the region. copyright©iasexpress.net

Inflation

• Inflation rates have been above central banks’ targets, leading to demand-retarding monetary tightening measures.

Russia’s Termination of Black Sea Grain Deal

• Russia’s termination of the Black Sea grain deal has the potential to lead to a 15% increase in grain prices, impacting low-income African economies.

Debt Vulnerabilities in Frontier Economies

• There is a need for a global debt resolution initiative to address debt vulnerabilities in frontier economies.

Lopsided Growth Risks

• Lopsided growth risks could have a significant impact on the global economic edifice, potentially causing imbalances and disruptions.

Who

• The World Economic Forum is the organization providing the world economic outlook and analysis.