In a poll carried out by Reuters, it is stated that the world economy will grow 2.1% in 2023 and 2.8% in 2024compared to 2.3% and 3% in the survey conducted in October.
The result shows that global economic growth is expected to barely exceed 2% this year, according to a Reuters poll of economists, who said the biggest risk was a further reduction in their forecastsin contradiction with the general optimism in the markets since the beginning of the year.
Notable conclusions
“The fall in energy prices, the slowdown in inflation in most economies from multi-decade highs, the unexpected resilience of the Eurozone economy and China’s economic reopening have led traders to speculate so the recession will be milder,” reported Reuters.
This has propelled the MSCI Global Stock Index of all countries up nearly 20% from October lows, hitting a closing five-month high on Tuesday, despite increased risk of central banks holding down interest rates. higher interest rates for longer instead of cutting them”.
But economists as a whole were much less optimistic, cutting growth forecasts for this year and next from 2.3% and 3.0%, respectively, in the October 2022 survey, to 2.1% and 2.8%. of the current poll.
The report quotes Rabobank analysts: “The market continues to trade for a dream scenario in which inflation has peaked and then declines sharply, but without spilling over.”
“However… the range of future scenarios is really wide, and yet the market seems to have settled for a happy median that looks the least likely to transpire.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
