Life,  Wealth

IMF Lowers Global Economic Growth Forecast to 2.9% for 2023, Sees European Countries Stagnating

Just now, the IMF lowered its global economic growth forecast for next year to 2.9%
On October 10, the International Monetary Fund (IMF) released the latest “World Economic Outlook Report” on the 10th local time. It is expected that the global economy will grow by 3.0% in 2023 and 2.9% in 2024. The growth rate in 2024 will be 7% higher than this year. The monthly forecast was revised down by 0.1 percentage point.

The report shows that the current global economy continues to recover from the new crown epidemic and the Ukraine crisis, but the recovery process is still slow and uneven. Although the global economy showed resilience earlier this year, economic activity is still below pre-pandemic levels, and divergence among countries is growing.

The report predicts that global economic growth will slow down from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024, both of which are lower than the historical (2000 to 2019) average level of 3.8%.

Specifically, advanced economies are expected to grow by 1.5% this year and 1.4% next year, which is the same as the forecast in July this year. The U.S. and euro zone economies are expected to grow by 2.1% and 0.7% respectively this year and 1.5% and 1.2% next year. Emerging market and developing economies are expected to grow by 4.0% this year and 4.0% next year. Next year’s growth rate is 0.1 percentage points lower than the July forecast. China’s economy is expected to grow by 5.0% this year and 4.2% next year.
The IMF predicts that with the tightening of monetary policy and the decline in international commodity prices, the global inflation rate is expected to steadily decrease from 8.7% in 2022 to 6.9% in 2023 and 5.8% in 2024. Overall, inflation in most countries is not expected to return to target levels until 2025.

The IMF recommends that many countries are close to the peak of their tightening cycle and do not need to tighten further; to increase long-term economic growth, structural reforms need to be achieved, especially focusing on governance, corporate supervision and external sector reforms; multilateral cooperation can help To ensure that all countries achieve better growth results; countries should be committed to limiting geoeconomic fragmentation and working to restore trust in the rules-based multilateral framework to increase transparency and policy certainty and help promote common global prosperity.

The International Monetary Fund expects economic growth in many European countries to slow to near stagnation
On October 10, the International Monetary Fund (IMF) released the World Economic Outlook Report, which predicted that the economic growth of several European countries such as the Netherlands, Germany, and Austria will be close to stagnant.
The IMF lowered its economic growth forecast for the Netherlands in 2023 from 1% to 0.6%, and in 2024 to 1.1%;
The forecast for Spanish economic growth in 2023 is maintained at 2.5%, but the growth forecast for 2024 is lowered from 2% to 1.7%.
The IMF predicts that the German economy will shrink by 0.5% in 2023;
Austria’s economy will grow by only 0.1% in 2023 and 0.8% in 2024.

The IMF said the economic slowdown in these countries is closely related to high inflation and sharp interest rate hikes by central banks.

The IMF predicts global economic growth of 3% in 2023 and 2.9% in 2024, slightly lower than previous expectations, and believes that inflation rates in many countries will remain at relatively high levels by 2025.

Kazakhstan’s economy grew by 4.7% in the first three quarters
On the 10th local time, according to the website of the Kazakhstan Prime Minister’s Office, Kazakhstan’s economy grew by 4.7% in the first three quarters of this year.

According to reports, Kazakhstan Prime Minister Smailov chaired a government work meeting that day to discuss Kazakhstan’s social and economic development in the first three quarters.

According to Kazakhstan’s Minister of National Economy Kuantilov, in the first nine months of this year, Kazakhstan’s economy grew by 4.7%. Among them, the real economy grew by 3.7% and the service industry grew by 5.1%. According to data, the construction, trade, information and communications industries grew rapidly; agricultural investment increased by 37.5%, and industrial investment increased by 8.2%.

According to sources, from January to September this year, Kazakhstan’s foreign trade volume increased by 4.2%, reaching US$91.1 billion. Among them, the export value was US$51.2 billion.

In addition, the country’s annual inflation rate has shown a downward trend for the seventh consecutive month and slowed to 11.8%. In view of the current trend and based on comprehensive considerations, the Central Bank of Kazakhstan decided to lower the benchmark interest rate by 0.5 percentage points to 16%.

During the meeting, Smailov pointed out that various departments need to take specific measures to increase the economic growth rate in various fields. In this regard, he said that we should continue to attract domestic and foreign investment, accelerate the implementation of investment projects in manufacturing, agriculture, transportation, logistics, information technology and tourism; strive to improve the development conditions of small and medium-sized enterprises and create new jobs; continue to stabilize Grain product prices stimulate domestic grain production.

It’s hard to describe in one word!

error: Content is protected !!