IMF projects growth for this year of 2.8%

In a new update report on the World economy perspectives (WEO), the International Monetary Fund (IMF) lowered its forecasts for world growth of 3.4% in 2022 to 2.8% this year 2023.

The multilateral financial organization states, however, that by 2024 the world economy will return to 3% growth of its gross domestic product (GDP). In the case of Latin America, the IMF forecasts that it will only grow 1.6% this year and then resume 2.2% in 2024.

Low global growth, including LATAM, is due to the fact that the inflation remains high although he does not stop citing the effects of Covid-19, the banking turmoil and the war in Ukraine.

Deceleration
Similarly, it foresees a pronounced slowdown for emerging economies, ranging from 2.7% in 2022 to 1.3% this year.

“In a reasonable alternative scenario with increased stress on the financial sector, global growth slows to about 2.5% in 2023, while growth in advanced economies falls below 1%,” it says.

“In our latest forecast, world growth will bottom out at 2.8% this year, to then increase slightly to 3.0% in 2024.

Global inflation will decline, albeit more slowly than initially expected, from 8.7% in 2022 to 7.0% this year and 4.9% in 2024”, says Pierre-Olivier Gourinchas, Economic Counselor of the IMF, in his introduction to the WEO, which he titles “Nobody said it was going to be easy”.

Maintains that emerging market and developing economies are already getting ahead of the game in many caseswith jumps in growth rates (from fourth quarter to fourth quarter) from 2.8% in 2022 to 4.5% this year.

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Projects 4.9% for DR
In its WEO report, the International Monetary Fund indicates that the Dominican Republic grew 12.2% in 2021, 4.9% in 2022 and projects a growth of 4.2% for this year, a percentage higher than world growth and that of the LATAM region.

While for the years 2024 and 2025 the growth projected by the IMF in its update report on the World Economic Outlook is 4.9% in both years for the Dominican Republic.

Similarly, In terms of inflation, cascading percentage numbers are expected from 8.24% in 2021 and 8.81% in 2022 to 5.7% this year 2023 and 4.3% for both 2024 as for 2025. Brazil and Mexico will grow 0.9% and 1.8% of their GDP, respectively.

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