After the International Monetary Fund (IMF) released the latest "World Economic Outlook Report" in October last year and lowered its global economic forecast for 2023, IMF Managing Director Kristalina Georgieva reversed her attitude in her latest speech in Washington, Expressed confidence in the global economy this year.
"The recent downward revision to global growth may be coming to an end, and economic expansion may accelerate next year, and the dark clouds hanging over the world economy may soon lift. The IMF is expected to release new global forecasts later this month." Grid Olgieva said.
On October 11, 2022, the World Economic Outlook Report released by the IMF pointed out that global growth is expected to slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.
This is the weakest growth scenario since 2001, outside of the acute phase of the global financial crisis and the COVID-19 pandemic.
Meanwhile, growth in the largest economies slows markedly: US GDP contracts in the first half of 2022 and the euro area in the second half of 2022.
About one-third of the world economy faces two consecutive quarters of negative growth.
Georgieva mentioned that with the optimization and adjustment of epidemic prevention policies, China will contribute to global economic growth this year.
"We think we've hit bottom, and by the end of 2023 we'll see a trend reversal, with the potential for a higher growth trajectory in 2024," Georgieva said.
While Georgieva turned optimistic about the global economy, she still warned of global economic risks: Inflation remains stubbornly high, and central banks around the world are raising borrowing costs in an attempt to curb the fastest inflation in decades the outcome of Russia's war in Ukraine is particularly unpredictable; fears that the global energy crisis could plunge the world into recession have not yet materialized; and while advanced economies are poised to recover, many poor countries continue to Facing the prospect of recession or default.
Regarding the U.S. economy, Georgieva also expressed optimism that the U.S. economy is preparing for a "soft landing." Even if a recession does occur, it may be mild because U.S. consumer demand remains strong.