Pessimistic expectations of the International Monetary Fund about the global economy
The US economy will enter a state of recession and inflation until 2024
Shrouq
The United States is expected to enter recession most likely this year, and will face high inflation until 2024.
That's what a majority of economists expected in a survey conducted biannually by the National Association for Business Economics (NABE).
Inflation rate
More than two-thirds of respondents in the National Association for Business Economics' lead survey believe that "the inflation rate will remain above 4 percent at the end of this year."
217 members of the Association participated in the survey, which was conducted between the second and the tenth of March, the Foundation said in a statement, published by "Sky News Arabia".
The rate of economic growth in America slowed in the fourth quarter of last year to 2.6 percent, which is slightly less than the forecast of 2.7 percent.
This indicates that interest rate hikes by the US Federal Reserve are curbing growth in the world's largest economy.
The US Department of Commerce revised the growth rate in the fourth quarter of 2022 down to 2.6 percent in the last reading of growth, compared to 2.7 percent in the second reading, which is lower than the growth rate in the third quarter of 3.2 percent.
The US Federal Reserve raised key interest rates, by 25 basis points, this month, in line with expectations, to reach a range between 4.75 and 5 percent, at the highest level since September 2007, that is, before the global financial crisis.
International Monetary Fund
On the other hand, the Director-General of the International Monetary Fund, Kristalina Georgieva, renewed her pessimistic expectations for the high economy, during the current year 2023.
She stressed that the world is on a date with a difficult year due to many indicators, including a decline in growth and turmoil in the banking sectors as a result of the rapid transition to higher interest rates, which are indicators that were driven by the ongoing monetary tightening measures prompted by the Russian-Ukrainian crisis.
Declining global growth
Georgieva said, during her speech at the Boao Forum for Asia 2023, China: "It is expected that 2023 will be another difficult year, as global growth declines below 3% as a result of the repercussions of the conflict in Ukraine and the continuation of monetary tightening measures."
