IMF: World Economic Growth Expected to Decelerate to 2.7 Percent This Year

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Tuesday during a World Economic Forum panel that global economic growth is expected to decelerate to "around 2.7%" this year.

Georgieva commented that IMF sees 3 "very significant challenges" for 2023. The first one is the war in Ukraine, which is affecting consumer and business confidence. The second one is the "cost of living crisis" and the third one is rising interest rates, which are "at a level we have not seen in decades."

Barrick Gold Corp.’s gold output slid last year to its lowest level since 2000, missing analysts’ expectations and its own target as operational woes curbed production.

Goldman Sachs (GS) stock was falling after the investment banking giant reported earnings that came in below analyst forecasts. Goldman reported a profit of $3.32, below forecasts for $5.56, on sales of $10.59 billion, missing estimates for $10.83 billion.

Commoditywise, OPEC stated in its January report published earlier today that its world oil demand growth forecast remains unchanged from December and stands at 2.5 million barrels per day (bpd) for 2022 and 2.2 million bpd for 2023. Total global oil demand is expected to average 99.6 million bpd in 2022 and 101.8 million bpd in 2023. In Q1 this year, oil demand is expected to rise by 1.7 million bpd compared to the same quarter in 2022. However, OPEC warned that its predictions are "subject to many uncertainties, including global economic developments, shifts in Covid-19 policies, and ongoing geopolitical tensions."

Asian stock indexes traded mixed on Tuesday following the latest report on inflation in the United States, which showed prices are continuing their downward trend, rising 6.5% in December. The IMF said it does not expect to revise down its previous global growth forecast for 2023 of 2.7%.

The Nikkei 225 surged by 1.23% at the market close, but most other regional indexes fell, including Hang Seng which lost 0.78% at the same time. Meanwhile, the Kospi Composite dropped by 0.85%, the S&P/ASX 200 slid by just 0.03%, the Shanghai Composite shed 0.1%, and the Shenzhen Composite remained unchanged.