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
Shah Rukh Khan Health Update: Shahrukh Khan is still undergoing treatment in Ahmedabad Hospital, expected to be discharged today
Bollywood's Badshah Shahrukh Khan was admitted to a hospital in Ahmedabad after a heat stroke, after which much information related to his health came to light. After his health deteriorated late on
IMF to Pakistan bluntly: Managing Director said – Learn to behave like a country, take money from us and give benefits to the rich
The International Monetary Fund (IMF) has advised Pakistan to improve instead of issuing a new tranche of the loan. IMF Managing Director Kristalina Georgieva has said that first of all Pakistan has
Mayank Yadav: IPL 2024 This is how Mayank Yadav was selected in Lucknow Supergiants, Delhi cricket legends revealed big secrets
IPL's new sensation Mayank Yadav may be being talked about all over the world for his speed, but there was a time when he used to come to practice in a carpool. Former DDCA selector and former player
Fraud in the name of Akshay Kumar's production house, fake casting agent tried to trap the influencer
Struggling actors and actresses are often cheated in the name of films. Many times people are implicated even by taking big names. Now a similar case has come up regarding Akshay Kumar. An attempt was
Demand to remove Aurangzeb's tomb: 'The government will do its work, you do your work', Rane told Hindutva organizations
Maharashtra minister Nitesh Rane on Monday, referring to the demolition of the Babri Masjid, told Hindutva organizations that the government will fulfill its responsibility and they should fulfill
Quiet Hiring: Companies doing recruitment quietly amid layoffs, a trend started in many places in 2022
The corporate world has seen several trends in the recent past which have grabbed a lot of headlines. These include trends like 'resigning in large numbers', 'quitting jobs quietly', 'working in
Canada: Khalistani terrorist Hardeep Singh Nijjar shot dead in Canada, NIA had declared him a fugitive
Canada Khalistani Terrorist Hardeep Singh Khalistani terrorist Hardeep Singh Nijjar living in Canada has been murdered in a gurudwara. He was shot at the Guru Nanak Sikh Gurdwara in the
G-20 countries expressed concern over AI in P-20 summit, know what is PM Modi's mission life
In the conference of Speakers of Parliament of G-20 countries, all the members appeared sensitive towards human rights. Concern was raised over the increasing use of Artificial Intelligence (AI) in
UNGA 2023: 'Democracy is in danger due to foreign interference' said Canada after jaishankar's rebuke in UN
Union External Affairs Minister S Jaishankar arrived in New York on Tuesday, days after India successfully hosted the G20 summit in New Delhi. Here he addressed the 78th United Nations General
Hera Pheri 3: Paresh Rawal gave a special message to fans after leaving 'Hera Pheri 3', the picture went viral
There is a lot of commotion in Bollywood these days regarding the film 'Hera Pheri 3'. While on the one hand, the fans were eagerly waiting for the third part of the film, on the other hand, the news
