IMF revised the forecasts for 2023

Analysts of the International Monetary Fund have raised its economic forecast for this year. Following them, global growth will go faster than expected previously, but slower than in previous decades.

The IMF is now forecasting global economic growth of 2.9% in 2023, having improved the forecast by 0.2 percentage points. The Fund explains this by inflation reduction and China’s rejection of the zero-tolerance policy for COVID-19.

“Economic growth proved surprisingly resilient in the third quarter of 2022 due to strong labour markets, robust household consumption and business investment, as well as better-than-expected adaptation to the energy crisis in Europe”, – the IMF analysts noted in their report.

According to the IMF, “the escalation of the war in Ukraine is still a serious threat to global stability, which could destabilize energy or food markets and further divide the world economy.” Another factor is the increase in interest rates, with the help of which central banks are trying to reduce inflation.