IMF Lowers Projections for Global Economic Growth in 2023
Apr 20, 2023 | 16:02 GMT
The International Monetary Fund (IMF) on April 11 lowered its projections for global economic growth in 2023 to 2.8%, down 0.1 percentage points from the last IMF update in January and down 0.6 percentage points from global economic growth in 2022. The IMF also lowered its projections for global growth in 2024 by 0.1 percentage points to 3%. Emerging and Developing Europe, Emerging and Developing Middle East and Central Asia, Emerging and Developing Latin America, and Emerging and Developing Sub-Saharan Africa are now forecast to see slower growth that is 0.2-0.3 percentage points lower than previously predicted, but the IMF did not revise the outlooks of any other regions. Despite the modest downward revision, the IMF sees the global growth outlook heavily weighted to the downside, not least because of increased financial instability risks. Broader global financial risks, including increasing possibilities of default in developing economies, are contributing to the IMF's sinking outlook, and these risks will remain elevated due to the significant monetary tightening over the past 12 months being led by central banks in North America and Europe.