International credit rating agency Moody’s has revised down its 2023 growth forecasts for the G20 economies, claiming that the tightening of monetary policy will have a drag on economic activity and employment in most major economies.
The agency expects G20 economies’ economic growth to downshift to two percent in 2023 from 2.7 percent in 2022, and then to improve to 2.4 percent in 2024, despite the fact that this year started on a seemingly optimistic note for the global economy following positive surprises on several fronts, including the lifting of Covid-related restrictions in China, unseasonably warm weather that has helped Europe cope with the energy crisis better than expected, and improved financial conditions.
Meanwhile, Moody’s has revised upward its 2023 growth forecasts for the US, the euro area, China, India, Mexico, Russia, Saudi Arabia and Turkey.
For Turkey, the agency has revised its 2023 and 2024 real GDP growth projections upward to 2.3 percent and four percent, respectively, from earlier forecasts of two percent and three percent, taking into account the reconstruction activities in the earthquake-hit regions.