The growth outlook for 2023 has been further revised downwards. Unsurprisingly, inflation, with the higher cost of raw materials, energy and gas and the rise in prices as well as the zero covid policy in China explain this macroeconomic pessimism. Europe remains the most negatively impacted continent, China with its drastic restrictions is struggling to recover while some Asian countries are doing well.
With the pandemic and, even more so, the war in Ukraine, growth is expected to decelerate sharply and inflation is high in 2023. According to the latest reports from the Organisation for Economic Co-operation and Development (OECD), global GDP is expected to grow by 2.2%, down from 3.1% this year. If an energy shortage occurs during the winter, this growth could fall below 2% and global GDP could fall by 10%. The report states that the war in Ukraine, led by Russia, “increases the risk of debt distress in low-income countries, but also food insecurity”.
Europe in the red, oil exporting countries in the green
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