IMF chief expects to keep 2023 global growth forecast steady at 2.7%

The International Monetary Fund is not expected to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday, noting that concerns about an oil price spike had failed to materialize and labor markets remained strong.

Reuters
Published13 Jan 2023, 06:12 AM IST
IMF Managing Director Kristalina Georgieva said 2023 would be another tough year for the global economy
IMF Managing Director Kristalina Georgieva said 2023 would be another tough year for the global economy(AFP)

The International Monetary Fund is not expected to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday, noting that concerns about an oil price spike had failed to materialize and labor markets remained strong.

IMF Managing Director Kristalina Georgieva said 2023 would be another "tough year" for the global economy, and inflation remained stubborn, but she did not expect another year of successive downgrades like those seen last year, barring unexpected developments.

"Growth continues to slow down in 2023," she told reporters at the IMF's headquarters in Washington. "The more positive piece of the picture is in the resilience of labor markets. As long as people are employed, even if prices are high, people spend ... and that has helped the performance."

She added that the IMF does not expect any major downgrades. "That's the good news."

Georgieva said the IMF expected the slowdown in global growth to "bottom out" and "turn around towards the end of '23 and into '24."

Georgieva said there was much hope that China - which previously contributed some 35% to 40% of global growth, but had "disappointing" results last year - would once again contribute to global growth, likely from mid-2023. But that depended on Beijing not changing course and sticking to its plans to reverse its zero-COVID policies, she said.

She said the United States - the biggest economy in the world - was likely to see a soft landing, and would suffer only a mild recession, if it did enter a technical recession.

But Georgieva said great uncertainty remained, including a significant climate event, a major cyberattack or the danger of escalation in Russia's war in Ukraine, for instance through the use of nuclear weapons.

"We are now in a more shockprone world and we have to be open-minded that there could be risk turn that we are not even thinking about," she said. "That's the whole point of the last years. The unthinkable has happened twice."

She cited concerns about growing social unrest in Brazil, Peru and other countries, and the impact of tightening financial conditions remained unclear.

But inflation remained "stubborn" and central banks should continue to press for price stability, she added.

 

 

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:13 Jan 2023, 06:12 AM IST
Business NewsEconomyIMF chief expects to keep 2023 global growth forecast steady at 2.7%

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Motors share price

    827.10
    09:52 AM | 11 NOV 2024
    21.4 (2.66%)

    Tata Steel share price

    146.10
    09:52 AM | 11 NOV 2024
    -1.45 (-0.98%)

    Ashok Leyland share price

    228.90
    09:52 AM | 11 NOV 2024
    6.9 (3.11%)

    Indian Oil Corporation share price

    138.40
    09:52 AM | 11 NOV 2024
    -2 (-1.42%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Krishna Instit Of Medical Scienc share price

    584.05
    09:36 AM | 11 NOV 2024
    13.85 (2.43%)

    Indian Hotels Company share price

    747.60
    09:36 AM | 11 NOV 2024
    14.55 (1.98%)
    More from 52 Week High

    Hitachi Energy India share price

    12,811.10
    09:36 AM | 11 NOV 2024
    -1207.4 (-8.61%)

    Asian Paints share price

    2,535.00
    09:36 AM | 11 NOV 2024
    -234.25 (-8.46%)

    CE Info Systems share price

    1,902.90
    09:36 AM | 11 NOV 2024
    -152.9 (-7.44%)

    Aarti Industries share price

    442.30
    09:36 AM | 11 NOV 2024
    -32.45 (-6.84%)
    More from Top Losers

    ITI share price

    328.40
    09:36 AM | 11 NOV 2024
    24.8 (8.17%)

    EIH share price

    382.00
    09:36 AM | 11 NOV 2024
    23.05 (6.42%)

    Power Finance Corp share price

    470.55
    09:36 AM | 11 NOV 2024
    21.1 (4.69%)

    JSW Energy share price

    745.30
    09:36 AM | 11 NOV 2024
    33.2 (4.66%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      79,375.000.00
      Chennai
      79,381.000.00
      Delhi
      79,533.000.00
      Kolkata
      79,385.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts