The International Monetary Fund (IMF) is expected to update its World Economic Outlook for 2023 today. The organization last updated
The International Monetary Fund (IMF) is expected to update its World Economic Outlook for 2023 today.
The organization last updated its economic outlook in October, when it downgraded its global growth prediction for 2023 from 2.9% to 2.7% and warned of a looming recession in many parts of the world. The IMF’s chief economist noted that 2023 was “going to feel painful.” The main reasons for the bleak outlook include China’s economic slowdown, the ongoing war in Ukraine, the energy crisis in Europe and the global cost-of-living crisis.
Yet, based on recent comments by the IMF Chief Kristalina Georgieva, today’s updated report is expected to be more optimistic than previously expected. The recent slowing of inflation in the developed world and China’s end to its strict zero-COVID policy are reasons for cautious optimism. Therefore, it is likely that the economic outlook for this year will slightly improve. The report will also include updated growth figures for 2022, which are expected to be around 3.2%.
The report will likely also highlight several areas of increasing economic concern, including the volatile situation across much of the developing world. Pakistan, Sri Lanka and Egypt are all currently seeking further IMF funding to stabilize their ailing economies.