The International Monetary Fund (IMF) upgraded its global economic growth forecast on Monday.
The reopening of China's economy and resilient consumer spending are expected to counteract economic risks including inflation and the Russo-Ukrainian war.
- The IMF unveiled its latest World Economic Outlook report on Monday.
- The organization raised its global economic growth forecast for 2023 from 2.7% to 2.9%, citing China's decision to loosen its "Zero Covid" policy and the continued resilience of consumer spending.
- The weakening of the U.S. Dollar has bolstered emerging markets while the European energy crisis was less severe than initially thought.
- U.S. growth is projected to slow to 1.4% from 2.1% in 2022 but the country could "escape a recession altogether," said Pierre-Olivier Gourinchas, the IMF’s chief economist.
- In October, the IMF predicted that a third of the world's countries could enter a recession in 2023.
