By Indu Tyagi Ketan, 07 February, 2023
The inflation crisis has gripped the economy of 2022 for many reasons, including geo-political reasons. But recent studies by International Monetary Fund (IMF) predict the recession is a slowdown. Although the outlook is not that rosy since significant headwinds await ahead.
Reports by the IMF note that global growth is expected to drop from estimated 3.4 percent in 2022 to 2.9 percent in 2023 and again rise to 3.1 percent in 2024. In 2023, the progress in October is estimated to be 2.7 percent as IMF no longer sees a global downturn, with fewer countries facing recession in 2023.
The research by IMF also anticipates global inflation to come down to 6.6 and 4.3 percent in 2023 and 2024, respectively. It is lower than the 8.8 percent inflation seen in 2022. IMF's chief economist Pierre-Olivier Gourinchas wrote in a report that "economic growth proved resilient in the third quarter of 2022 with strong labour markets, robust household consumption and business investment, and better adaptation of the energy crisis in Europe."
Again, amid the inflation crisis, the priority was always to achieve sustained disinflation, as per the reports. According to IMF, it is necessary to strengthen debt restructuring frameworks and deploy macroprudential tools due to tighter monetary conditions and slow growth affecting financial stability. But on the downside, risks remain for this recovering economy, as the Russia-Ukraine could further escalate; China’s health outcomes could be a hurdle in the recovery and requirement of tight monetary policies for inflation.
Thus, the road to full recovery is only initiated with stable prices, overall progress, and sustainable growth, according to Gourinchas report.
Indu Tyagi Ketan
Chief Strategy Officer
According to the reports, consumer demand for electronics has fallen by 30 percent with the growing fear of global recession. It says the semiconductor market would have a modest recovery by the second half of 2023 if the global economy does not fall…
Coffee drinkers never say no to a good brew of hot coffee as the first thing they do after waking up. Neither deny a coffee date at their favorite coffee shop nor step back to get one cup of cappuccino for themselves. There are more fans of coffee…
The world's health is threatened by alarming air pollution, which is humankind's most significant health hazard. Only air pollution leads to over six million deaths yearly, and economic costs are over USD 8 trillion.
According to the reports, the…
Digitally the world is progressing day by day. With a single click, the world is on your phone screen. From pizza to partners, the world finds its desirable choices on the Web. Thus, a new survey found that more people are finding partners through…
Climate change has always been a headache to the world. The Climate Change Performance Index 2023 compares 59 countries and the EU in the renewable energies, Greenhouse Gas emissions, energy use, and climate policy. It provides an overview of the…