Mainland China’s economy is expanding while global economic outlook for 2023 looks dim: S&P Global Market Intelligence

New Delhi [India], September 22 (ANI): S&P Global Market Intelligence on Thursday said mainland China’s economy is expanding again after a setback in the second quarter due to Covid-19 lockdowns while the global economic outlook for 2023 has dimmed as financial conditions deteriorated.
In terms of mainland China, the analysis of S&P Global Market Intelligence explained industrial production of People’s Republic of China (PRC) rose 4.2 per cent year-on-year in August, while services output increased just 1.8 per cent year-on-year. Growth will remain constrained by the government’s dynamic zero-Covid policies, a deep property sector recession and weakening export demand.
S&P Global Market Intelligence projects China’s real GDP growth to slow from 8.1 per cent in 2021 to 3.3 per cent in 2022 before picking up to 4.5 per cent in 2023 and 5.5 per cent in 2025.
S&P Global Market Intelligence now projects global real GDP growth to slow from 5.8 per cent in 2021 to 2.8 per cent in 2022 and 2 per cent in 2023. The 2023 growth rate is revised down 0.3 percentage point from last month’s forecast, reflecting weaker outlooks for the world’s largest economies — the eurozone, mainland China, Japan, and US.
Elaborating on the global slowdown, Sara Johnson, executive director, economic research, S&P Global Market Intelligence, said: “Tightening financial conditions will lead to a further slowdown in global economic growth, putting expansions in vulnerable regions at risk and deepening anticipated recessions in Europe. The combination of subpar economic growth, rising unemployment, and improving supply chain conditions will cause inflation to subside over the next two years.”
While S&P Global Market Intelligence on US economy said that it was facing an extended period of tepid growth and rising unemployment. Despite a slight easing since June, consumer price inflation remained as high as 8.3 per cent year-on-year in August while central bank Federal Reserve is determined to bring back inflation back to its 2 per cent target. (ANI)