IMF Maintains Its Previous GDP Predictions

IMF building at night. Photo: IMF/ Facebook.

In its latest quarterly prognosis, the IMF maintains its previous forecast of 3% global economic growth this year, but expects global GDP to expand at a slower pace of 2.9% next year. Hungary remains in recession for now, with a 0.3 percent contraction this year and a 3.1 percent rebound next year, the IMF predicted.

In a fresh forecast published on Tuesday, the International Monetary Fund (IMF) expects global economic growth this year to be similar to its July forecast, but slightly lowered its expectations for next year. In other words, the IMF is forecasting global GDP growth of three percent in 2023, in its World Economic Outlook (WEO), followed by a slightly slower expansion of 2.9 percent next year. The latter projects a decline of 0.1 percentage points compared with the outlook three months earlier. By comparison, global GDP grew by 3.5 percent last year.

After 2.6 percent growth in the advanced economies last year, the Washington-based financial institution expects growth of 1.5 percent this year and 1.4 percent next year, with no change from July in its forecast for this year and next. In the United States, GDP is expected to grow by 2.1 percent this year, up from 2.1 percent last year and 0.3 percentage points from July. In 2024, GDP is expected to grow by 1.5 percent, 0.5 percentage points higher than in July.

According to the report, Hungary’s GDP will contract by 0.3 percent this year and grow by 3.1 percent next year, after expanding by 4.6 percent last year.

Inflation is expected to be 17.7 percent this year and 6.6 percent next year, up from 14.5 percent last year.

The unemployment rate is expected to rise to 3.9 percent this year from 3.6 percent last year and fall to 3.8 percent next year.

Via: Index.hu; Featured image: IMF/ Facebook.