The Most Dire Apprehensions Regarding Global Economic Development Could Be Waning

Must Read

Next week’s business surveys will likely demonstrate consistent progress across many developed countries, allowing for a glimmer of hope that the global economy can avoid any significant downturn.

US Economic Forecast 2023

Economic experts have forecasted that purchasing manager indexes for the US and eurozone will continue to climb. Although some indicators may still suggest a decrease, this potential upward trend could add credibility to the idea of a “soft landing.” On top of that, policy firmness carried out by central banks has yet to be fully experienced.

With China’s reopening from pandemic lockdowns, diminishing inflation rates, and the reassurance of some senior European officials that recessions won’t occur in their economies, prospects are becoming increasingly promising. As suggested by its chief on Friday, the International Monetary Fund may even soon upgrade its outlook for this year.

We have demonstrated the strength of labour markets translating into consumers spending and keeping the economy up. With the reopening of China, we expect growth this year to again exceed the global average.” Kristalina Georgieva said at the World Economic Forum in Davos, Switzerland.

U.S. First Quarter GDP Estimate

The United States’ performance will be vital to the success of this year, and Thursday’s initial estimate for fourth-quarter gross domestic product may provide insight. Analysts anticipate that the US economy should rise at an annualized rate of 2.7% in Q4 2022 after a 3.2% growth in quarter three. 

Still, some more recent data—including retail sales, home construction, and industrial production—indicates a reduction in momentum starting around late 2022.

If interest rates continue to rise, economists believe that the GDP in the US will start to decline within the next few quarters. Although Asian economic growth could help improve this outlook, there is still a risk that it might not have the desired effect on the world economy.

What if the good news of China growing faster translates into oil and gas prices jumping up, putting pressure on inflation?” IMF chief suggested.

Consumers have been driving up fourth-quarter GDP through their spending on services, despite a decrease in expenditures for goods. It is due to households utilizing the leftover stimulus money and enjoying steady increases in paychecks. A tighter monetary policy will likely lead to significantly weaker demand come 2023.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img