Thursday, February 9, 2023

2023 ‘rough’: World Bank warns of recession risk in Mexico

Gross domestic product (GDP) Global one will suffer recession suddenly with weakening of advanced economieswhich will aggravate the adverse conditions for emerging economies and developing countries, including Latin Americaalerted world BankWhen it is estimated that the growth of PIB Mundial It will be 1.7 percent in 2023, the slowest in nearly three decades.

“It is expected that world growth to slow to 1.7 percent in 2023, the third weakest growth rate in nearly three decades, eclipsed only by global recession Due to this pandemic and financial crisis”, he warned in his Global Economic Outlook.

After a projected growth of 2.9 percent in 2022, forecast for world gdp growth Growth of 1.7 percent for this year is 1.3 percentage points below the June forecast, reflecting a tightening of the economy. policies designed to contain a lot inflation leveldeteriorate financial terms and frequent interruptions Russian invasion of Ukraine,

“United States of america, Eurozone and China undergoing a period of apparent weakness, and the resulting spillover effects have exacerbated other headwinds faced developing countries, Markets and Developing Economies (EMDE)”, he said, noting that the combination of slower growth, with an adjustment of financial terms and potentially high indebtedness weakens Investment and trigger corporate defaults.

in AmericaThe expectation is that after growing 1.9 percent in 2022, it will slow to 0.5 percent in 2023, the weakest performance outside the world. official recession since 1970. in euro areaA recession is projected from 3.3 percent to 0.0 percent in 2022, with a contraction in activity in the first half of the year before stabilization, and projections for Japan are a GDP expansion One percent this year.

for China A recovery of 4.3 per cent is projected; Although the possibilities emerging economies and has declined markedly due to the hardening of developing countries financial terms and getting weaker external demand,

In Latin America, the two most large economies, Brazil and Mexicowill not even reach 1.0 percent growth rate, and even in countries like Chile Its activity is expected to decline.

weakness for mexico

In this difficult context, the world Bank guess that Mexican economy After expanding 2.6 percent during 2022, it will grow barely 0.9 percent in 2023, to resume Development previous years’ average of 2 percent; Forecasts for 2024 point to a growth of 2.3 percent.

“The Mexico’s economy According to estimates, this year will expand by 0.9 percent, as monetary terms Sanctions, persistently high inflation and a decline in exports will weigh down activity,” they said in their report.

this is the second cut economic growth expectation that the organization works on Mexico, after last October, it projected that Mexico would grow by 1.5 percent by 2023; Whereas a few months back in June this estimate was 1.9 per cent.

weakening of Mexican economy is in line with the possibilities of Brazil with an estimated 0.8 percent increase in 2023 and 1.3 percent in the case of Colombia, while for ChileA contraction of 0.9 per cent is projected for the year.

Nation World News Desk
Nation World News Desk
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