World Economic Outlook Update, 2023

Recently, the International Monetary Fund (IMF) has released the “World Economic Outlook Update, 2023. As per report the global growth is projected to fall from an estimated 3.5 percent in 2022 to 30 percent in both 2023 and 2024.”

About World Economic Outlook Update, 2023

  • Released on– July, 25, 2023
  • Released by The International Monetary Fund (IMF)
  • World Economic Outlook- Published twice a year

Key Highlights

  • Global growth is projected to fall from 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024 on an annual average basis.
    World trade growth is expected to decline from 5.2 percent in 2022 to 20 percent in 2023, before rising to 3.7 percent in 2024, well below the 2000-19 average of 4.9 percent.
  1. The decline in 2023 reflects not only the path of global demand, but also shifts in its composition toward domestic services, lagged effects of US dollar appreciation.
  • For emerging market and developing economies, growth is projected to be broadly stable at 4,0 percent in 2023 and 4.1 percent 2024, with modest revisions of 0.1 percentage point for 2023 and -0.1 percentage point for 2024.
  • Growth in India is projected at 6.1 percent in 2023, a 0.2 percentage point upward revision compared with the April, 2023 projection
  1. It reflects momentum from stronger-than- expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.
  • Global headline inflation is set to fall from an annual average of 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024.
    About the International Monetary Fund (IMF)

    • The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s
    • It works to achieve sustainable growth and prosperity for all of its 190 member countries.
    • It does so by supporting economic policies that promote financial stability and monetary cooper- ation, which are essential to increase productivity, job creation, and economic well-being
    • The IMF has three critical missions: furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity.
    • Headquarter- Washington, DC USA.