IMF revises up global economy forecast for 2023, still expects slowdown

World economy expected to grow 2.9% this year compared to 2.7% in October, but down from 3.4% expansion for 2022

ISTANBUL:

The International Monetary Fund has revised up its outlook for the global economy in 2023 but still expecting a slowdown this year before a rebound in 2024.

According to an IMF report released late Monday, the world gross domestic product growth rates will remain weak due to the ongoing Russia-Ukraine war and high inflation figures.

The world economy is expected grow 2.9% in 2023, upgraded from 2.7% in the IMF’s October report, but down from 3.4% expansion for 2022.

The IMF expected a rebound to 3.1% in 2024.

Advanced economies will see bigger decreases in growth rates, from 2.7% in 2022 to 1.2% in 2023 and 1.4% in 2024.

The GDP growth rate expectations for the US was at 1.4% in 2023 and 1% in 2024.

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The report also showed that British economy is expected to narrow 0.6% in 2023 before expanding 0.9% next year.

The growth forecasts for emerging markets and developing economies were at 4% in 2023 and 4.2% in 2024.

The Russian economy, which shrank 2.2% in 2022, is expected expand 0.3% this year and 2.2% next year.

In its October report, the IMF forecast 1.1% growth for advanced economies and 3.7% for emerging market and developing economies.