While central banks around the world have taken drastic measures to tame prices through rate increases, these actions are weighing heavily on global economic growth. This weakness is expected to continue until rate cuts begin later next year and work their way through the economy.
EDC Economics expects the global economy to grow by just 2.9% in 2023 and 2.7% next year. With a slowing labour market and debt burdens stifling demand, Canada’s growth forecast sits at just 1.3% this year and dropping to 0.6% in 2024. We expect growth to slow in the United States to 2% in 2023 and just 0.6% in 2024. As Europe struggles to avoid stagnation, we expect growth to bottom out at 0.7% this year, before settling at 1.1% in 2024.
Export Development Canada’s 2023 Global Economic Outlook is a must-read, packed with valuable information, as well as insights on the world’s key economies, interest rates, commodity prices and exchange rates. Click below to read the full report.