WASHINGTON: The International Monetary Fund on Tuesday (Jan 31) raised its 2023 global growth outlook slightly due to 'surprisingly resilient' demand in the United States and Europe, an easing of energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions. The
WASHINGTON: The International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to"surprisingly resilient" demand in the United States and Europe, an easing of energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions.
IMF chief economist Pierre-Olivier Gourinchas said recession risks had subsided and central banks are making progress in controlling inflation, but more work was needed to curb prices and new disruptions could come from further escalation of the war in Ukraine and China's battle against COVID-19. Britain was the only major advanced economy the IMF predicted to be in recession this year, with a 0.6 per cent fall in GDP as households struggle with rising living costs, including for energy and mortgages.The IMF revised China's growth outlook sharply higher for 2023, to 5.2 per cent from 4.4 per cent in the October forecastin 2022 slashed China's growth rate to 3.0 per cent - a pace below the global average for the first time in more than 40 years.
Gourinchas said together, the two Asian powerhouse economies will supply over 50 per cent of global growth in 2023. But it enumerated more and larger downside risks, including more widespread COVID-19 outbreaks in China and a worsening of the country's real estate turmoil.
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