The global growth in 2023 expects to slash to 3.8%. The global gross domestic product to weaken from 5.9% in 2021 to 4.4% in 2022. It is half a percentage point lower than previously estimated. The appearance of the omicron Covid variant and following market instability since October are the foremost reasons. As a result, the global economy enters 2022 in a weaker position than anticipated. On this trend, World Economic Outlook reports, global growth to slow to 3.8 percent in 2023.
US and China Effect
The down in growth is due to the world’s two largest economies; the U.S. and China.
The U.S. is likely to grow 4.0% in 2022, 1.2 percentage points lower than previously forecast. China to grow 4.8% this year, down 0.8 percentage points from earlier estimates amidst troubles caused by its zero-Covid policy.
Inflation in focus
The IMF says higher inflation would persist for longer than previously anticipated.
India as an emerging economy
The growth of India is 9 percent in 2021 and it would be the same 9 percent in 2022. But the Gross Domestic Product would slash down a little to 7.1 percent in 2023.
