INSUBCONTINENT EXCLUSIVE:
(Reuters) - For much of the global economy, 2023 is going to be a tough year as the main engines of global growth - the United States,
Europe and China - all experience weakening activity, the head of the International Monetary Fund said on Sunday.The new year is going to be
October, the IMF cut its outlook for global economic growth in 2023, reflecting the continuing drag from the war in Ukraine as well as
inflation pressures and the high interest rates engineered by central banks like the United States Federal Reserve aimed at bringing those
price pressures to heel.Since then, China has scrapped its zero-COVID policy and embarked on a chaotic reopening of its economy, though
consumers there remain wary as coronavirus cases surge
At that time, it also saw annual growth in China accelerating in 2023 to 4.4% while global activity slowed further.Her comments, however,
suggest another cut to both the China and global growth outlooks may be in the offing later this month when the IMF typically unveils
the United States economy is standing apart and may avoid the outright contraction that is likely to afflict as much as a third of the
make in bringing United States inflation back to its targeted level from the highest levels in four decades touched last year
a mixed blessing because if the labor market is very strong, the Fed may have to keep interest rates tighter for longer to bring inflation
from near zero in March to the current range of 4.25% to 4.50%, and Fed officials last month projected it will breach the 5% mark in 2023, a
level not seen since 2007.Indeed, the United States job market will be a central focus for Fed officials who would like to see demand for
labor slacken to help undercut price pressures
is expected to show the United States economy minted another 200,000 jobs in December and the jobless rate remained at 3.7% - near the
lowest since the 1960s.Source: Reuters--Agencies
This article first appeared/also appeared in https://adaderana.lk
