Global economy to slowdown in 2023
World GDP growth at 2.7% in 2022; High inflation in the US and Europe continues to gain momentum, while growth decelerates: Moody’s Analytics
Chennai: Moody's Analytics on Monday predicted the global economy to grow at 2.7 per cent in 2022 and slow to 2.3 per cent in 2023.
In its latest report, Moody's Analytics said the global environment is more fragile as record high inflation in the US and Europe continues to gain momentum while growth decelerates.
Stagflation risks have risen worldwide, but a stagflationary environment would take months to be realised.
Business sentiment remains muted and is consistent with a global economy that is just avoiding recession, Moody's Analytics said.
According to the report, the global economy is at a crossroads, as the nascent post-pandemic recovery has quickly morphed into a darker and more fragile environment.
Record-high inflation in the US and Europe from supply shortages and surging commodity prices following Russia's invasion of Ukraine are weighing on the global expansion and are compounded by an aggressive monetary policy response.