The global economy is expected to grow by 1.7% in 2023 and 2.7% in 2024. However, the growth rate is predicted to be only 1.2% in 2023, which is on par with 2009 when the world was only beginning its emergence from the financial crisis. Experts see 2023 featuring even higher interest rates, still-elevated inflation, rising unemployment, and a tougher job market for workers.
The US economy is expected to slow down in 2023 due to tighter monetary policy, slow growth in Europe and China, higher energy prices, and an expensive dollar. The Federal Reserve has already started tapering its bond purchases and is expected to raise interest rates in 2023. The European Central Bank (ECB) has also signaled that it may start tapering its bond purchases in 2023. China’s economy is expected to slow down as well due to tighter regulations on property and technology companies.
The COVID-19 pandemic continues to pose a risk to the global economy. The emergence of new variants and the slow pace of vaccination in some countries could lead to renewed lockdowns and supply chain disruptions. Natural disasters such as hurricanes and wildfires could also disrupt economic activity.
It’s important to note that these predictions are based on current data and are subject to change depending on various factors such as government policies, natural disasters, and other unforeseen events.
Sources:
- World Economic Outlook for 2023 Increasingly Gloomy - Voice of America
- Global Economic Prospects: Sharp, Long-lasting Slowdown to Hit … - World Bank
- Economic Outlook 2023: US Sugar High Will Run Out, Make Life Miserable - Business Insider
- Recession in 2023? That depends on where you are in the world - World Economic Forum
- World Economic Outlook, April 2023: A Rocky Recovery - IMF
- US Economic Forecast Q2 2023 | Deloitte Insights