Is there going to be a storm cloud over the global economy?

The global economy continues to face challenges due to the Russian invasion of Ukraine.

The cost of living crisis due to the slowdown in China and the continuing broad inflationary pressures.

Our global growth forecast for this year is unchanged at 3.2 percent, while our forecast for next year is 0.2 percent below our July forecast of 2.7 percent.

The recession of 2023 will be broad-based, with countries poised to contract about 1/3 of the global economy this year or next.

China, the euro and the United States, the three largest economies, will continue to stagnate in the region.

Overall, this year's shocks will resurface economic wounds that were only almost partly healed after the pandemic.

In short, for many the worse is yet to come. 2023 will feel like a recession.

Growth in the United States will further slow to one percent next year as monetary and financial conditions tighten.

In China, we have lowered our forecast for next year's growth to 4.4 percent due to weak asset sector and continued lockdown.