The International Monetary Fund (IMF) has projected in its latest World Economic Outlook forecasts that growth will slow from 3.4 percent last year to 2.8 percent this year.
Growth is then expected to accelerate to 3 percent next year.
The Fund said risks to the outlook are heavily skewed to the downside, with heightened chances of a hard landing.
“In a plausible alternative scenario with further financial sector stress, global growth would decelerate to about 2.5 percent in 2023,” it said.
Mark your calendars! The IMF’s Regional Economic Outlook for Europe is set to launch on April 28th. The report will address questions about Europe’s economy, including inflation, risk of recession and the region’s financial sector risks.
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— IMF (@IMFNews) April 21, 2023
Looking further ahead, the IMF added, growth is expected to remain around 3 percent over the next five years.
“This baseline forecast of 3 percent five years ahead for 2028 makes it the lowest medium-term growth projection since 1990, and well below the average of 3.8 percent from the past two decades.
“The anemic outlook reflects the tight policy stances needed to bring down inflation, the fallout from the recent deterioration in financial conditions, Russia’s war in Ukraine, and growing geoeconomic fragmentation.