Ripoti ya Ukuaji wa Uchumi Duniani

Miss Zomboko

JF-Expert Member
May 18, 2014
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According to the World Economic Outlook (WEO) July 2023 report, the global economy was projected to grow at 3.0 percent in 2023, higher by 0.2 percentage points than 2.8 percent forecasted in the WEO April 2023 report.

The increase in the rate of growth was in line with various reasons including: significant recovery of Supply chains and shipping costs and suppliers’ delivery times are back to pre-pandemic levels.

However, inflation remains high and continues to erode household purchasing power. Policy tightening by central banks to contain inflation has raised the cost of borrowing thus constraining economic
activities.

Immediate concerns about the health of the banking sector have subsided, but high interest rates are filtering through the financial system, and banks in advanced economies have significantly tightened lending standards, curtailing the supply of credit.

The impact of higher interest rates extends to public finances, especially in poorer countries struggling with elevated debt costs, constraining room for priority investments.

As a result, output losses compared with pre-pandemic forecasts remain large, especially for the world’s poorest nations. Despite these headwinds, global economic activity was resilient in the first quarter of 2023, with that resilience driven mainly by the services sector
 
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