The International Monetary Fund says it’s no longer predicting a global recession, but warned the fight against high inflation is not over.
With China’s reopening and the resilience of consumers, the International Monetary Fund issued a brighter outlook this week for the global economy.
The global outlook is projected to slow to 2.9% in 2023, with inflation declining to 6.6%.
As for the world’s two largest economies: the U.S. growth is expected to slow to 1.4-percent while China’s output is expected to accelerate to 5.2-percent this year.
In fact, China and India are expected to drive the growth in 2023.
China’s manufacturing sector rose in January for the first time in months and domestic travel experienced a huge boost during the Chinese New Year.
Joining the discussion:
- Klisman Murati is the founder of Pareto Economics, a global affairs research consultancy.
- Anthony Chan is the former Chief Economist for JP Morgan Chase.
- Jorge Heine served as the Chilean Ambassador to China and is currently a Research Professor with the Frederick S. Pardee School of Global Studies at Boston University.
- Qu Qiang is the Assistant Director of the International Monetary Institute in Beijing.
🆕 The IMF projects global growth to fall from 3.4% in 2022 to 2.9% in 2023, and then rise to 3.1% in 2024. Inflation is peaking amid low growth. Read our analysis in the World Economic Outlook Update. https://t.co/4ifKc9qi4j #WEO pic.twitter.com/5tdSaw0Q81
— IMF (@IMFNews) January 31, 2023
Breaking News: The global economy is expected to slow less than previously predicted and a worldwide recession may be avoided, an IMF report said.https://t.co/Uy6Whbf15n
— The New York Times (@nytimes) January 31, 2023