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IFF’s 2023 report anticipates global economic challenges amid tightening policies, geopolitical concerns, and resilient Chinese GDP growth.

The International Finance Forum (IFF) “Global Finance and Development Report 2023” projects that as monetary policy tightens, the conflict in Ukraine, and the ongoing consequences of the COVID pandemic continue to impact global GDP, global economic growth could fall to about 3.1% in 2023.

According to a report presented at the IFF 2023 annual meeting, China’s GDP is expected to increase by 5.2% in 2023 and 5% in 2024 as the nation implements a number of stimulus plans.

It appears likely that the world economy will encounter significant challenges in the future. Geopolitical concerns, such as the conflict in Ukraine, might further destabilise the world’s food and energy markets, meaning that core inflation in many countries is expected to remain much beyond central banks’ targets.

Tightening monetary policy in an attempt to control inflation may further reduce demand; geopolitical unrest may further cause an economic slowdown and uncontrollable inflation; and the uncertainty surrounding China’s economic growth trajectory this year may further impede global growth.

According to the IFF Report, the world economy would still be poor in 2024 even if the GDP will have grown by 3.1% globally. Additionally, it projects that inflation will decrease much more to 5.8% in 2024 and that global consumer prices will drop to 7% this year from 9.2% in 2022.

Tighter monetary policy

The paper makes several recommendations, including tightening monetary policy without compromising global financial stability, strengthening fiscal position while safeguarding disadvantaged populations, quickening structural change, and fostering multilateralism and international collaboration.

The global financial market is also examined in the IFF report, along with the US regional bank crisis, the US debt ceiling conflict, China’s local government and corporate loans, and the effect of policy rates on currency performance.

According to the IFF assessment, vulnerabilities in China’s financial system are unlikely to develop into systemic threats. The IFF also examines global green finance legislation, carbon markets, and China’s green bond markets. The International Forestry Forum (IFF) urges global communities to work together to combat climate change.

Additionally, IFF sheds light on global digital finance in the report, specifically on the use of big data, blockchain, and artificial intelligence.

The IFF world Finance and Development Report, which is released annually during the IFF Annual Meeting, provides information on the financial markets, the Chinese economy, and the world economy.

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