Business News Asia
WTI oil prices fell this morning as investors worried about the economic outlook after the director of the International Monetary Fund (IMF) warned that the global economy will face a more difficult situation in 2023.
- WTI crude futures were down 93 cents, or 1.16%, at $79.33 a barrel.
The IMF reported on Sunday (Jan. 1) that the global economy will face an increasingly difficult situation in 2023. The reason for this is the weakening of economic activity in the U.S., Europe, and China, the three main drivers of the global economy. This will present the global economy with greater difficulties in 2023 than in 2022.
“In 2021, the Chinese economy grew at a slower pace than the global economy for the first time in 40 years. In China, there will be a sharp spike [of COVID cases] in the coming months which will affect the Chinese economy and drag the economy both in Asia and around the world,” the IMF said.
In addition, the U.S. could avoid a recession thanks to a strong labor market. However, the U.S. remains vulnerable to the effects of an aggressive interest rate hike by the Federal Reserve (Fed) to bring inflation back to its 2% target.
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Tuesday, January 3, 2023