Given the tight monetary stance of various central banks, it appears that the weakness in global growth will continue. Moody's Investors Services has said these things.
In its global macro outlook titled 'Global economic risks persist despite recent positive surprises', monetary policy tightening will weigh on economic activity and employment in most major economies.
The report said, “We estimate that the G-20 global economic growth rate will decline from 2.7 percent in 2022 to 2 percent in 2023.” Then in 2024, it will improve to 2.4 percent.
The report noted that while inflation will continue to moderate, a sustained decline in the central bank's targets is not guaranteed. For example, inflation in the US declined from 6.5 percent in December to 6.4 percent in January. In the previous month, it was 7.1 percent. However, it is still above the target of 2 percent.
The US central bank's policy rate is now in a target range of 4.50-4.75 percent, the highest level in 15 years, and was particularly close to zero in the early part of 2022. Raising interest rates is a monetary policy tool that usually helps to suppress demand in the economy, thereby helping to bring down the inflation rate.
The report envisions inflation in advanced economies staying above the central bank's targets for the better part of 2023 and 2024.
"We expect inflation to continue to decline in most G20 economies over the next year, subject to softening of demand from central bank actions," Moody's said. Moody's said central banks would keep interest rates on hold for longer than financial markets expected. “While it is clear that the end of monetary policy tightening is near, it is difficult to say how much more rate hikes would be appropriate and how long rates will remain restrictive,” he said.
Also Read: USA: India is perfect for the partner America needs against China – big statement of American MP
Kartik Aryan: Kartik Aryan revealed his dream project, and expressed his desire to work with these directors
Actor Karthik Aryan is in the news these days about his upcoming film 'Chandu Champion'. He is preparing vigorously for this film. The actor was dieting to get into the character. Recently, Karthik
Nagpur Violence: Rioters in Nagpur molested female police officers during the violence; FIR registered
In Nagpur, Maharashtra, on Monday night, protesters misbehaved with policemen on CA Road in Chitnis Park. An FIR was registered against this incident at Ganeshpeth Police Station.
Ranbir Kapoor: The teaser of 'Animal' will be so many minutes, that only a glimpse of Ranbir Kapoor will be seen.
Ranbir Kapoor is in the headlines these days for his film 'Animal'. Fans are also very excited about this film of the actor. Ranbir Kapoor will be seen in a completely different avatar in this film
Har Ghar Tiranga: Upload a selfie with tricolor here, PM Modi urged, know-how
The country is going to celebrate its 77th Independence Day on the 15th of August. All preparations have been made for the hoisting of the national flag and the program at the Red Fort in the capital
Sam Bahadur: Vicky Kaushal used to call his wife Katrina before every shot, told how he prepared for the role
The amazing trailer of Vicky Kaushal's much-awaited film 'Sam Bahadur' was released yesterday on 7th November. Everyone is forced to applaud after seeing the actor as Sam Manekshaw. Vicky has played
Bangladeshi terrorists could launch an attack before January 26; an alert has been issued in Delhi and several other states.
Security agencies have issued a major alert ahead of the Republic Day celebrations (January 26). According to intelligence sources, Khalistani terrorist organizations and Bangladesh-based terror
US Tariff: America imposed 25% additional tax on India, Shashi Tharoor said- this is double standard; we should learn from it
US President Donald Trump has imposed a 25% additional tax on goods coming from India. This tax has been imposed by India on buying oil from Russia. After this decision, a total of 50% tax will be
The air remains toxic: Haze lingers in Delhi's skies... AQI nears 400; find out how toxic the air in NCR has become.
The air in the capital Delhi, continues to remain toxic. On Monday morning, thick smog enveloped many areas of the city, pushing the air quality into the "very poor" category. The air quality index in
Salaar Twitter Review: 'Salaar' saved Prabhas's sinking boat or did it create a divide? The audience gave its verdict
Salaar Twitter Review: A day after the release of Shah Rukh Khan's 'Dinky', finally Rebel Star Prabhas's film Salaar has hit the theatres. After the release of the second trailer of 'Salaar' directed
Earthquake: The earthquake occurred in Kishtwar, Jammu, and Kashmir, the intensity was 3.6 on the Richter scale.
Earthquake tremors were felt in Kishtwar, Jammu, and Kashmir on Tuesday morning. National Seismology Center has given this information. Seismological Center said that at 8.53 am, an intensity of 3.6
