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Business News/ Economy / Will high inflation go away in 2023? Here's country-wise predictions
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Will high inflation go away in 2023? Here's country-wise predictions

According to IMF, there are 40 countries, including the UK with the highest forecasted inflation rates in 2023

Taiwan, China, and Japan are all predicted to see inflation lower than 3% this year (Getty Images via AFP)Premium
Taiwan, China, and Japan are all predicted to see inflation lower than 3% this year (Getty Images via AFP)

Since Russia invaded Ukraine in February 2022, talks of global recession have dominated the outlook for this year. High inflation, spurred by rising energy costs, has tested GDP growth. The International Monetary Fund (IMF) has made a projection that inflation is heading as the world is facing a macroeconomic drop. The IMF said inflation is expected to be impacted by slower demand, rising wages, and a weaker US dollar. The IMF has projected a 6.6% global inflation rate for 2023 and 4.4% for 2024 in its latest announcement.

According to IMF, there are 40 countries, including the UK with the highest forecasted inflation rates in 2023.

The IMF said that the high inflation at 9% is projected in 2023 as "lower purchasing power and hawkish monetary policy drag on the economy". With a 204% forecasted inflation rate, Zimbabwe's inflation rate is highest in the world. IN 2020, inflation stood at 557%.

Countries with the highest forecasted inflation rates in 2023: Zimbabwe (204.6%); Venezuela (195%); Sudan (76.9%); Argentina (76.1%); Turkey (51.2%); Iran (40%); Sri Lanka ( 29.5%); Ethiopia (28.6%); Suriname (27.2%); Sierra Leone (26.8%); South Sudan (21.7%); Haiti (21.2%); Ghana (20.9%); Pakistan (19.9%); Nigeria (17.3%); Yemen (17.1%); Malawi (16.5%); Poland (14.3%); Moldova (13.8%); Myanmar (13.3%); Hungary (13.3%); Belarus (13.1%); Kyrgyz Republic (12.4%); Guinea (12.2%); Mongolia (12.2%); Egypt (12%); Angola (11.8%); Kazakhstan (11.3%); Romania (11%); Uzbekistan (10.8%); Azerbaijan (10.8%); Turkmenistan (10.5%); Slovak Republic (10.1%); Congo (9.8%); Zambia (9.6%); Estonia (9.5%); Montenegro (9.2%); Bangaldesh (9.1%) and UK (9%), respectively.

IMF's World Economic Outlook
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IMF's World Economic Outlook

Visual Capitalist reported that the aforementioned countries fight to sustain their purchasing power, and other countries will continue to fare exceptionally well against the backdrop of a widespread cost of living. For instance, countries like Taiwan, China, and Japan are all predicted to see inflation lower than 3% this year. The IMF has projected a 5.1% inflation rate for India in 2023 and for the US at 3.5%. Further IMF is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.

Inflation drivers:

In 2022, food and energy prices accounted for much of the inflation. But IMF's World Economic Outlook highlighted that core inflation, which excludes food, energy, housing prices, and transport, is a major driving factor in high inflation rates around the world.

Besides, the Russia-Ukraine conflict and the lingering effect of the Covid-19 pandemic are also at play in the 2023 inflation forecast.

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Published: 09 Feb 2023, 09:32 AM IST
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