IMF Predicts Global Growth to Slow to 2.7 Percent

The International Monetary Fund predicts global growth will slow to 2.7% in 2023. "The worst is yet to come, and for many people 2023 will feel like a recession," the report reads. The most respected fInancial thinktank’s GDP estimate for this year remained steady at 3.2%, which was down from the 6% seen in 2021.

Aside from the global financial crisis and the peak of the Covid-19 pandemic, this is "the weakest growth profile since 2001," the IMF said in its World Economic Outlook published Tuesday. Its GDP estimate for this year remained steady at 3.2%, which was down from the 6% seen in 2021. "The worst is yet to come, and for many people 2023 will feel like a recession," the report said, joining similar warnings from UNO, the World Bank and many top global investment banks.

Meanwhile, European markets are trading modestly lower this afternoon after the publication of downbeat GDP, industrial production and trade balance data from the United Kingdom. Investors are now awaiting industrial production data from the Eurozone later in the day. In numbers, at the time of writing, the British FTSE 100 is declining 0.11%. Pershing Square Holdings (PSH.L), up 1.86%, led the gains. The French CAC 40 is lower by 0.23% but with LVMH (MC.PA) climbing 0.52% after reporting a 28% increase in revenue for the first 9 months of the year. Concurrently, the German DAX lost 0.44%. The worst performer was Brenntag (BRN.DE), with its shares falling 4.14%.

Across Fx, the euro gained just 0.02% against the dollar to 0.9708 at 9:32 am CET and the pound sterling climbed 0.04% against to the greenback to 1.09583 at the same time.