Daily Management Review

S&P lowers GDP growth forecast for the world's biggest economies


The economic consequences of Russia's military action in Ukraine have caused S&P to lower its GDP growth forecast for some of the world's top countries for the next two years. According to the agency, the Asia-Pacific region's economy, which includes China, will only begin to rise in 2023.

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"A number of macroeconomic indicators have deteriorated since our last forecast in late March," it said in a press release, "including weaker first-quarter performance in many countries, higher energy and commodity prices, a longer-than-expected Russia-Ukraine conflict, a more rapid monetary policy normalization, and slower Chinese growth."

The US economy will grow at 2.4 percent in 2022, down from 3.2 percent in 2017, and 2 percent in 2023, down from 2.1 percent. GDP growth in the Eurozone will slow to 2.7 percent in 2022 and 2.2 percent in 2023, down from 3.3 percent and 2.6 percent previously forecast. In 2022 and 2023, the UK economy is predicted to increase by 3.3 percent and 1.2 percent, respectively, compared to 3.5 percent and 2.3 percent previously forecast.

China's GDP will increase by 4.2 percent in 2022, down from 4.9 percent previously forecast. However, the figure would rise by 5.3 percent in 2023, not the 5% that the agency expected. GDP growth in Asia-Pacific will decline from 5.1 percent to 4.6 percent in 2022, but will rise from 4.7 percent to 5% in 2023. The European Commission had previously cut its macroeconomic estimates.

source: reuters.com