Showing resilience

Global growth seems to be holding on in 2023, but is slated to lose steam next year.

S&P Global revised upwards its forecast for global growth for 2023 by 20 basis points (bps) to 3.1%, citing unexpectedly strong demand for services. However, it revised down its forecast for 2024 by 20 bps to 2.8% since it expects a global slowdown later than previously expected.

It pegged the 2023 forecast for the US 50 bps higher to 2.3%, while that for China was revised down 40 bps. While the estimate for Japan (1.2% to 1.8%) and the United Kingdom (UK; 0% to 0.3%) was revised up, that for the euro zone was unchanged from the previous outlook, at 0.6%.

Inflation remains a major issue in key advanced economies, remaining above central bank prices. Rising crude oil prices are an upside risk to global inflation.