In 2023, the Gross Domestic Product (GDP) growth of the Advanced Economies (AEs) is anticipated to slow. From an estimated 2.7 percent in 2022, the rise in AEs is predicted to decrease to 1.2 percent in 2023, in part because of high interest rates, difficult labor markets, and ongoing disruptions in the European energy sector.
According to Bank of Namibia annual report predicts that the United States GDP growth would decrease to 1.4 percent in 2023 from 2.0 percent in 2022. In addition, the prediction for the Euro Area’s growth in 2023 is 0.7 percent, down from the previous year’s 3.5 percent, due to the carryover from the 2022 outcome, lower wholesale energy prices, and additional government energy price restrictions and cash transfers.
Real GDP is expected to decrease by 0.6 percent in the UK in 2023, following positive growth of 4.1 percent in 2022, as a result of tighter fiscal and monetary circumstances, worsening financial conditions, and rising energy retail prices that will restrain household expenditure.
On the plus side, monetary and fiscal policy support as well as the weak Japanese Yen exchange rate are expected to help Japan’s growth rate rebound to 1.8 percent in 2023 from a 1.4 percent in 2022.
In contrast, a slight increase in Emerging Market Developing Economies (EMDEs) growth is anticipated for 2023.
Due to China’s expected excellent performance, the GDP growth rate for EMDEs is predicted to increase to 4.0 percent in 2023 from 3.9 percent in 2022.
According to projections, China’s GDP growth will increase to 5.2 percent in 2023 from 3.0 percent in 2022, primarily as a result of stalled consumer spending after the easing of pandemic restrictions.
Brazil’s real GDP growth is predicted to slow to 1.2 percent in 2023 from an estimated 3.1 percent in 2022. The poor growth is the result of a drop in investment after the central bank’s policy interest rate was raised beginning in early 2021.
In addition, it is anticipated that growth in India will decrease, falling from 6.8 percent in 2022 to 6.1 percent in 2023. The decline in the world economy and the growing level of uncertainty pose significant threats to India’s prospects.
Russia will continue to export oil to nations that are not subject to sanctions, thus the country’s GDP is expected to expand modestly by 0.3 percent in 2023 as opposed to a fall of 2.2 percent predicted for the previous year.