Thailand’s economy is expected to grow by 3.7% next year, more than the 2.7% predicted for the global average by the International Monetary Fund.
According to IMF predictions, the majority of APEC nations’ economies are contracting. Additionally, 1 in 3 economies worldwide are reportedly experiencing a recession.
Compared to this year, when the global GDP grew by 3.2% the world’s GDP is predicted to increase only by 2.7% in 2023.
The pandemic has caused a permanent loss of economic output equal to 5.3% of global GDP. In Asia–a very integrated region–this was even higher, a loss of 9% of GDP. In addition, the war in Ukraine caused a tremendous energy price shock.
Kristalina Georgieva, Managing Director, IMF
The Global Economy and APEC are Slowing
The IMF anticipates a decline in global growth to 2.7% in 2023. At least one-third of the world’s population will experience a recession, and most APEC nations are slowing down. U.S., China, and Europe, the three main drivers of global economy, are all slowing down at the same time, which is hurting emerging market exports.
For developing markets, the current situation is particularly challenging since, in addition to everything else, they are now being negatively impacted by the tightening measures taken by central banks in advanced economies. Borrowing rates have increased and currencies have lost value.
Climate threats are also increasing at the same time. For the first time this year, climate shocks have been felt on all continents, with Asia-Pacific suffering disproportionately. This area has seen 36% of all climate-related disasters since 1989.
