Global GDP growth anticipated to further slow in 2023-2024, agency says
S&P Global Ratings lowered its global gross domestic product (GDP) growth forecast for next year because of weaker than expected third quarter growth figures and slowing future prospects.
Although the global economy is expected to grow 5.7% this year, it is estimated to slow to 4.2% in 2022 down 0.2 percentage points from the agency’s previous forecast.
Global GDP growth is anticipated to also slow to 3.5% in 2023-2024, the rating agency said in a statement late Tuesday.
It said emerging market (EM) economies remain well below their end-2019 GDP levels and warned that they could suffer permanent output loss.
“This means that EM economies will not get back to their pre-pandemic GDP path,” according to the statement.
“The main cause of this outcome was the lack of fiscal space and spending, which led to the loss of non-replaceable expenditures,” it added.
As for advanced economies, the US is expected to see a GDP growth of 3.9% in 2022 and the euro zone expand 4.4%.
The Chinese economy is forecast to grow 4.9% next year.