Marking one of the lowest growth rates in recent decades, global economic growth is projected to decline from an estimated 3% in 2022 to 1.9% in 2023, according to a UN report released Wednesday.
The World Economic Situation and Prospects report said a series of severe and mutually reinforcing shocks in 2022, including the war in Ukraine and the effects of the coronavirus pandemic will weigh heavily on the world’s economy in 2023.
Persistently high inflation averaged about 9% in 2022, according to the report and global growth is forecast to moderately pick up to 2.7% in 2024.
”The near-term economic outlook remains highly uncertain, however, as myriad economic, financial, geopolitical and environmental risks persist,” said the report. ”The current global economic slowdown cuts across both developed and developing countries, with many facing risks of recession in 2023.”
The US’ gross domestic product (GDP) is projected to expand just 0.4% in 2023 and many European countries are projected to experience a mild recession, with elevated energy costs, high inflation, and tighter financial conditions depressing household consumption and investment, it said.
The EU is forecast to grow 0.2% in 2023, down from an estimated 3.3% in 2022.
The Russian economy shrank less than initially expected in 2022, with GDP declining about 3.5%.
Economic growth in China is projected to moderately improve in 2023 to 4.8 %, likely remaining well below the pre-pandemic rate of 6% to 6.5%, it said.