In a report prepared by two analysts from the multiplatform eToro, Ben Laidler and Josh Gilbert, it is indicated that the projections of the International Monetary Fund are less bad, and also ensure that Asia is the region that is really sustaining world economic growth.
The global outlook is not favourable, High interest rates, inflation rates plus the lack of investment are making the projections of the International Monetary Fund less than 3 points of world GDP growth. In fact, analysts point out that growth is estimated at between 0.2% and 2.9%, with a possible rise to 3.1% next year.
These situations are not encouraging for the world economy, however, investors seem to be more aware of it, and this could play in favor of slower growth in the world economy. They expect China to reactivatebecause the repressed consumption that currently exists resumes and that moves the global economy.
They further ensure that the global market could grow in the long-term average of 3.8%, but inflation rates hover around 6.6%. In the report they refer to the risks that arise, among which they emphasize the potentially lower economic growth and higher inflation, as well as geopolitical defragmentation and US debt.
It is clear that 2023 is a year that will feel the effects of the war among many other macroeconomic factors that have led the IMF to make such low growth projections.
That is why, they highlight from eToro, that this year it is so important for the global economy that China reactivatesmanufacturing industries among many other production processes in the world depend on the Asian giant, and it is essential, according to these data, that this change in a sustained and rapid manner.
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