Nearly every single person across the world has had to deal with inflation in their day to day lives. It has resulted in a severe cooling of the global economy, leading to currency crises in many major nations with even the Eurozone not being immune to its ill effects. In spite of the fact that this is the case, the IMF has just published some heartening news.
It turns out that the global economic forecast for 2023 is not as bad as many might’ve been fearing. According to the IMF’s latest iteration of World Economic Outlook, inflation seems like it is winding down and that could help the world’s economy to get back to normal faster than might have been the case otherwise.
With all of that having been said and now out of the way, it is important to note that cooling inflation still doesn’t mean that things are going to get better overnight. There will still be an economic slowdown, with global GDP growth declining to 2.9% in 2023 compared to 3.4% in 2022, but the reduced impact of inflation means that the slowdown will not be quite as severe.
If things pan out the way everyone is hoping and expecting, we might see the global economy start to attain some semblance of normalcy by the time 2024 comes around. Inflation is expected to settle at around 6.6%, down over 2 points from the 8.8% seen last year, and it will reduce further to around 4.4% by 2024 if current trends persist.
While this is still nearly an entire point higher than the prepandemic inflation rate of 3.5%, it is still a heartening seen that an economic turnaround could be right around the corner. The pandemic and its ensuing economic turmoil is likely going to end up defining the first half of the 2020s
However many are hopeful that the latter half will see a resurgence and a return to the world that so many had gotten used to before Covid. Others are pessimistic, saying that we will never see that world of plenty ever again at least in the near future.
H/T: Statista
Read next: The UK is the Only G7 Country That Will Be in a Recession in 2023
It turns out that the global economic forecast for 2023 is not as bad as many might’ve been fearing. According to the IMF’s latest iteration of World Economic Outlook, inflation seems like it is winding down and that could help the world’s economy to get back to normal faster than might have been the case otherwise.
With all of that having been said and now out of the way, it is important to note that cooling inflation still doesn’t mean that things are going to get better overnight. There will still be an economic slowdown, with global GDP growth declining to 2.9% in 2023 compared to 3.4% in 2022, but the reduced impact of inflation means that the slowdown will not be quite as severe.
If things pan out the way everyone is hoping and expecting, we might see the global economy start to attain some semblance of normalcy by the time 2024 comes around. Inflation is expected to settle at around 6.6%, down over 2 points from the 8.8% seen last year, and it will reduce further to around 4.4% by 2024 if current trends persist.
While this is still nearly an entire point higher than the prepandemic inflation rate of 3.5%, it is still a heartening seen that an economic turnaround could be right around the corner. The pandemic and its ensuing economic turmoil is likely going to end up defining the first half of the 2020s
However many are hopeful that the latter half will see a resurgence and a return to the world that so many had gotten used to before Covid. Others are pessimistic, saying that we will never see that world of plenty ever again at least in the near future.
Read next: The UK is the Only G7 Country That Will Be in a Recession in 2023
