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After some pessimism last year, the International Monetary Fund has increased its 2022 and 2023 growth forecasts. Global growth will slow from 3.4% in 2022 to 2.9% in 2023 and then rebound to 3.1%, the global agency predicts.
The IMF is encouraged by the recent reopening of China, which it
says paves the way for a rapid rebound in activity. It also notes that global financial conditions have improved as inflation pressures start to abate. This, and a weakening of the US dollar from its November high, provide some modest relief to emerging and developing countries, according to the latest analysis.
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