(Extract from the 2023 Annual Report of AADFI)
The year 2023 was marked by several noteworthy events, including the ongoing Russia–Ukraine war, the conflict between Israel and Hamas militants, intensified trade disputes between China and the United States, geo-political tensions, the increased impact of climate change that prompted diplomatic agreements1, and numerous climate adaptation and mitigation measures.
Economic indicators for 2023 revealed that low productivity, inflation, and declining earnings in most G20 nations prevented living standards from rising appreciably[1]. After growing by 3.0% in 2022, the global economy expanded by 2.0% in 2023, with an expected 2.1% growth in 2024[2] (Figure 1). In 2023, the economy grew by 2.0%, significantly less than the historical average of 3.8% between 2000 and 2019. While policy tightening begins to pinch, advanced economies may grow by 1.4% in 2024 after growing by 2.6% in 2022. Growth in emerging markets and developing economies decreased slightly from 4.1% in 2022 to 4.0% in 2023, and this trend may continue in 2024[3].
[1] https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/world-economic-outlook-october-2023
[2] https://www.oecd.org/economic-outlook/september-2023/
[3] https://www.oecd.org/economic-outlook/september-2023/