IMF: Global economy to slow in 2023, rebound in 2024

ALBAWABA - India is forecast to be the fastest growing global economy, with growth rates projected at 6.1 percent this year and a further rise to 6.8 percent in 2024,  the International Monetary Fund said.

In its World Economic Outlook for 2023, IMF said India "remains a bright spot."

"Together with China, it (India) will account for half of global growth this year, versus just a tenth for the U.S. and (the) euro area combined," the IMF said in its latest update to the biannual World Economic Outlook released Monday.

The United States is envisaged to record growth rates of 1.4 percent and 1 percent in 2023 and 2024 respectively, while the rates in the euro area combined are envisioned at 0.7 and 1.6 percent in the same periods, according to the report.

But the economy of the United Kingdom is expected to shrink by 0.6 percent this year, "performing worse than other advanced economies," according to the report. It is expected to rise to 0.9 percent in 2024.

"It predicted the U.K. would be the only country - across the world's advanced and emerging economies - to suffer a year of declining GDP," the BBC said, commenting on the IMF report.

Globally, the IMF projected growth to fall from 3.4 percent in 2022 to 2.9 percent in 2023, and then rise to 3.1 percent in 2024. "Inflation is peaking amid low growth," the report said.

It attributed the humble global GDP forecasts on "rising interest rates and the war in Ukraine," saying they "continue to weigh on economic activity."

It said China’s recent reopening following COVID-19 lockdowns "has paved the way for a faster-than-expected recovery." It forecast GDP in China this year at 5.1 percent.

"Global inflation is expected to fall to 6.6 percent in 2023 and 4.3 percent in 2024, still above pre-pandemic levels," according to the report.