The International Monetary Fund is not likely to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday, noting that a feared 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.would slow to 2.7% in 2023 after falling from 6.0% in 2021 to 3.2% in 2022. It had previously forecast growth of 2.9% for 2023, but Georgieva said she did not expect further cuts to the outlook.
She added that the IMF did not expect major downgrades, although the final number had not been determined. "That's the good news." 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 help fuel 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 aBut Georgieva said great uncertainty remained, citing the risk of 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.
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