Business News Asia
Economists at Barclays have lowered their forecasts for global growth in 2023, as inflation is unlikely to fall as quickly. This led to the application of tight monetary policies.
Barclays warned that 2023 is likely to be one of the years with the slowest economic growth in four decades. The global economy is expected to grow by 1.7% year-on-year. That’s down from the original September forecast of 2.2%, with developed countries likely to fall into recession.
For this year, Barclays expects economic growth of 3.2%.
Barclays expects developed economies to contract in 2023, with the recession in the UK and Europe starting in the third and fourth quarters of 2022, respectively.
For the US, Barclays expects a prolonged recession. As a result, gross domestic product (GDP) will fall by 0.1% in 2023.
Meanwhile, Barclays expects the Chinese economy to grow by 3.8% due to the delayed lifting of China’s zero COVID policy.
Barclay said India could be among the countries contributing most to global economic growth next year. But not enough to change the global economic outlook. The Indian economy is expected to grow by more than 5% year-on-year in 2023.