The UN lowered this Wednesday to 1.9% its growth forecast for the world economy in 2023 by a sharp slowdown in the United States and Europe.
The amount represents a clear cut compared to previous projections prepared by the United Nationswhich last May forecast growth of 3.1% for this year.
Looking ahead to 2024, the international organization expects that the effect of factors such as inflation and interest rate increases adopted to contain prices will already be softer and that the global economy will grow at a rate of 2.7 percent.
However, be warned that this evolution is still very uncertain and will depend on the adjustments in monetary policywhat happens in the Ukraine war and the possibility of more problems in the supply chain.
SLOWDOWN IN THE EU AND EUROPE
This year, the slowdown will be especially large in some of the world’s most advanced economiessuch as the United States and the European Union (EU).
The UN expects the US gross domestic product (GDP) to grow only 0.4% in 2023 and 1.7% in 2024, with lower consumption resulting from high interest rates and a loss of purchasing power for households .
In the EU, expectations are for growth of 0.2% this year and 1.6% next year, a sharp drop from previous forecasts that is explained by the consequences of the war in Ukraine.
Several European countries -among them Germany and Italy- will suffer small recessions in 2023 mainly as a result of high energy prices, inflation and more difficult financial conditions for consumers.
WORSENING IN ALMOST EVERYONE
The complex economic situation will be felt in almost the entire worldas the so-called transition economies are expected to contract by 0.8% this year, led by Russia, with a fall of 2.9%.
In China, the lifting of many of the restrictions imposed to combat COVID will accelerate growth to 4.8% this year compared to 3% in 2022, but the UN warns that the reopening of the economy will be complicated and that the Asian giant it will be far from recovering the rhythm prior to the pandemic.
In developing countries as a whole, growth of 3.9% is expected this year and 4.1% next year, but with very different figures depending on the region.
For example, while South Asia will grow by 4.8% and 5.9%, Latin America and the Caribbean will only grow by 1.4% and 2.5%, respectively.
JM
Themes
Read Also
Get the latest news in your email
Everything you need to know to start your day
Registering implies accepting the Terms and Conditions
