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2023 KIEP World Economic Outlook: Suppressed Recovery amid Tightening and Fragmentation

The world economy is in a shaky state following the Russia-Ukraine crisis, which broke out just as the world was adapting to the COVID-19 pandemic. The world economy is anticipated to expand by 3.1% this year and 2.4% in 2023, according to the KIEP 2023 World Economic Outlook published in November. From the 3.6% prediction put forth in May, the growth rate for next year was lowered by 1.2%p. Global economic damage is mounting as a result of the protracted Russia-Ukraine situation. The U.S. will record 0.6%, the Euro area 0%, Japan 1.5%, China 4.8%, India 5.6%, ASEAN-5 countries 4.9%, Russia –2.5%, and Brazil will be 0.6%. The global economic situation this time can be concisely described by "suppressed recovery amid tightening and fragmentation." Also, there are three related risk factors which might possibly lower the main projections even further. The first one is a sharp rise in interest rates and increasing private debt burden, the second problem is the dilemma of fiscal policies, and the third is geopolitical risks.
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