The present working paper aims to explore causes and consequences of the global economic slowdown in 2023, highlight the potential sources of upside and downside risks to the global economy, and analyse the future growth outlook for 2024 and beyond. [...] It identifies the economic fallout of the war in Ukraine, the global interest rate hikes, the prolonged effects of the COVID-19 pandemic, and the impacts of climate change as the major contributing factors to the global economic slowdown alongside the decline in global investment, a slowdown in global trade, debt distress, political instability, a weakening in productivity growth, an interruption. [...] The confluence of these multiple crises resulted in a significant blow to the world economy, and global growth slowed from 6.3% in 2021 to 3.5% in 2022according to the IMF,2 and from 6.0% to 3.1% according to the World Bank.3 In 2023, the effects of these multiple crises still reverberate worldwide. [...] Potential Sources of the Upside and Downside Risks to the Global Economy in 2023 The following section highlights the potential sources of upside and downside risks to the global economy that can lead to weaker- or stronger-than-expected economic growth in 2023. [...] While the reasons for the present global economic slowdown are many, the paper has identified the direct and indirect economic fallout of the war in Ukraine, the global interest rate hike spree, the prolonged effects of the COVID-19 pandemic, and the impacts of climate change as the major contributing factors.
- Pages
- 29
- Published in
- Pakistan
