According to its new World Economic Outlook report, global gross domestic product (GDP) growth next year will slow to 2.7%, compared to a previous outlook of 2.9% in July.

The FMI warned that high energy and food prices, as well as high interest rates to counter inflation, will slow the global economy and the real estate sector, forcing the situation to be worst significantly coming year.

FMI´s Chief Economist Pierre-Olivier Gourinchas added that the three largest economies, the United States, China and the euro zone, will continue to stagnate, so “the worst is yet to come, and for many people, 2023 will feel like a recession.”

Despite this, the organization maintained its most recent forecast that the global economy will grow 3.2% this year, reflecting better-than-expected output in Europe but weaker performance in the United States, following global growth of 6.0% in 2021.

For the United States, growth this year will be just 1.6%, down 0.7 percentage points from July, showing a GDP unexpected shrink in the 2Q 2022.

Meanwhile, China will grow less than expected, 3.2% this year – a sharp slowdown from the 8.1% achieved in 2021 – and 4.4% in 2023.

The euro zone, on the other hand, will grow 3.1% in 2022 (half a point more than forecast in July) but will slump to 0.5% in 2023.

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