Underlying Economic Conditions
The global economy faces growing challenges. Economic analysts assume that persistently high inflation, more restrictive monetary policy, higher interest rates, weak household incomes and the high energy prices that are in part the result of Russia’s attack on Ukraine will impede growth in 2023. The Organisation for Economic Co-operation and Development (OECD) expects global economic growth of 2.2 percent in 2023, well below the rate expected prior to outbreak of the Ukraine war. The prognosis for 2024 is for a global growth rate of 2.7 percent – underpinned by initial steps in several countries to lower key interest rates. The International Monetary Fund (IMF) also expects growth to slow further due to the effects of the war on Ukraine. According to the IMF, global gross domestic product (GDP) will rise by 2.9 percent in 2023.