S&P Global-lowered economic forecasts for 2023
2022.11.29 00:55
S&P Global-lowered economic forecasts for 2023
Budrigannews.com – Global S&P (NYSE:)On Tuesday, Ratings revised down its forecast for emerging economies’ growth in 2023, citing the ongoing Russia-Ukraine conflict, the COVID-19 pandemic, and tight monetary policy.
The ratings agency now anticipates real GDP growth of 3.8 percent next year, down from its previous projection of 4.1 percent.
“The descending correction to development comes from all EMs (developing business sectors) barring China and Saudi Arabia, with most economies ready to grow beneath their more drawn out run pattern rates,” it said, adding that conjectures for 2024 and 2025 remain comprehensively unaltered, averaging at 4.3%.
The agency issued a warning that monetary policies must remain restrictive even though inflation in emerging markets has passed or will soon pass the peak due to falling food and fuel prices. However, the inflation is still expected to remain above central bank targets in many economies.
According to S&P, “but the deceleration in inflation—coupled with a worsening outlook for growth—could bring policy easing onto the agenda in several EMs, particularly in Latin America, by the middle of next year.”
