International ratings agency Moody’s has published the August issue of its global macroeconomic outlook report for 2023-2024.
The agency stated in the report that tight financial conditions will continue to affect global economic growth in the remainder of this year and keep growth below this year’s trend in 2024. According to the agency, major central banks around the world will continue to implement restrictive policies throughout the next year.
Moody’s expects that real gross domestic product growth for the G-20 countries to continue to decelerate and remain below trend at annual rates of 2.5 percent in 2023 and 2.1 percent in 2024, compared with 2.7 percent in 2022.
Furthermore, the agency underlined that, even though the recession risk in the US has receded, GDP should be below the current trend in the country to reach the Federal Reserve’s target. Thus, the 2023 growth forecast for the US has been raised to 1.9 percent from 1.1 percent. However, the Chinese economy is still facing serious growth hurdles and so its growth forecast has been downgraded to 4.0 percent from 4.5 percent. As for the euro area, growth projections remain unchanged from May.
Meanwhile, Moody’s revised Turkey’s economic growth forecast for this year to 4.2 percent from 2.6 percent in its previous report published in late May, and has also upgraded the economic growth forecast for next year to three percent. The agency had expected the Turkish economy to grow by two percent in its previous report.