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IMF forecasts 90% of advanced economies will see slower GDP growth

Meanwhile, growth in the euro area "is projected to bottom out at 0.7% in 2023 before rising to 1.6% in 2024", growth in the United Kingdom is projected to be -0.6% in 2023

WASHINGTON, January 31. /TASS/. About 90% of advanced economies will face economic growth slowdown in 2023, according to the IMF’s World Economic Outlook update published on Monday.

"For advanced economies, growth is projected to decline sharply from 2.7% in 2022 to 1.2% in 2023 before rising to 1.4% in 2024, with a downward revision of 0.2 percentage point for 2024. About 90% of advanced economies are projected to see a decline in growth in 2023," the report said.

In the United States, growth is projected to decline from 2% in 2022 to 1.4% in 2023 and 1% in 2024, the report said. "There is a 0.4 percentage point upward revision for annual growth in 2023, reflecting carryover effects from domestic demand resilience in 2022, but a 0.2 percentage point downward revision of growth in 2024 due to the steeper path of Federal Reserve rate hikes, to a peak of about 5.1% in 2023," the report said.

Meanwhile, growth in the euro area "is projected to bottom out at 0.7% in 2023 before rising to 1.6% in 2024", growth in the United Kingdom is projected to be -0.6% in 2023, "a 0.9 percentage point downward revision from October, reflecting tighter fiscal and monetary policies and financial conditions and still-high energy retail prices weighing on household budgets", and growth in Japan is projected to rise to 1.8% in 2023, "with continued monetary and fiscal policy support."

As fot the emerging market and developing economies, "growth is projected to rise modestly, from 3.9% in 2022 to 4.0% in 2023 and 4.2% in 2024, with an upward revision of 0.3 percentage point for 2023 and a downward revision of 0.1 percentage point for 2024. About half of emerging market and developing economies have lower growth in 2023 than in 2022," the IMF said.

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