The S&P has worsened the forecast for the global economy due to the war in Ukraine.
The international rating agency S&P Global Ratings lowered its economic growth estimates for 2023. Analysts explained their forecast by noting pressure from the Russian Federation’s war against Ukraine, the protracted COVID-19 pandemic, and tight monetary policy conditions. As a result, real gross domestic product growth is forecasted at 3.8% next year, from the previous forecast of 4.1% growth. It is noted that the slowdown in growth will be driven by developing markets, except for China and Saudi Arabia. But in general, most economies are poised to grow below their long-term trend rates. The agency warned that while inflation in emerging markets has peaked or will soon peak, it may remain above targets. This forces monetary policy to remain restrictive.