S&P expects Asia-Pacific will lead global economic growth in 2023, while Europe and the U.S. will likely face recession.
According to S&P Global Market Intelligence, Asia-Pacific economies will dominate global growth in the coming year.
Real growth in the Asia-Pacific area is forecasted to reach about 3.5% in 2023, while major economies like Europe and the United States are predicted to enter recession.
“Asia Pacific, which produces 35% of world GDP, will dominate global growth in 2023, supported by regional free-trade agreements, efficient supply chains, and competitive costs,” S&P said in a note.
S&P previously predicted 2% increase in global real GDP for 2023, but now expects only 1.4% growth. That’s a steep decline from 5.9% global growth in 2021 and slower than S&P’s forecast of 2.8% growth in 2022.
Despite a gloomy projection, S&P predicts that the global economy would avoid a downturn thanks to moderate growth in Asia-Pacific, the Middle East, and Africa.
The firm added that Southeast Asia and India would benefit from diversifying its trade “away from mainland China.”
