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International expectations for global economic growth to decline to 1.9% in 2023

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The United Nations expected on Wednesday that global economic growth will drop significantly to 1.9 percent this year as a result of the food and energy crises sparked by the war in Ukraine, the current impact of the COVID-19 pandemic, the ever-high inflation, and the climate emergency.

The United Nations Department of Economic and Social Affairs, warning of bleak economic prospects full of uncertainties, said that the current global economic slowdown “includes both developed and developing countries, as many countries face risks of recession in 2023.”

“A sharp and widespread slowdown in the global economy looms, amid soaring inflation, aggressive monetary tightening and increasing uncertainty,” UN Secretary-General Antonio Guterres said in an introduction to the 178-page report.

The report said that economic growth expectations for this year amount to 1.9 percent, compared to about three percent in 2022 – and represent one of the lowest growth rates in recent decades, but it expects a moderate recovery of up to 2.7 percent in 2024 if inflation gradually recedes and economic headwinds begin to recede. .

The World Bank, which lends to poor countries for development projects, cut its growth forecast in its annual report, issued earlier this month, from a previous forecast of 3 percent to 1.7 percent.

The International Monetary Fund, which provides loans to needy countries, expected last October a slowdown in global growth from six percent in 2021 to 3.2 percent last year and 2.7 percent in 2023.

Kristalina Georgieva, Managing Director of the International Monetary Fund, told the World Economic Forum in Davos last week that 2023 will be a difficult year, but she adhered to expectations, and said, “We do not expect a global recession.”