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Slow down but no recession?


According to an article on floridarealtors.org, the global forecast call for slowing growth but not a recession. Here is some of the data we found interesting about this article:


A world economic group based in Paris, OECD, predicts world economic growth of only 2.2% in 2023 after 3.1% this year – but not a recession.


Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023.


In the OECD’s estimation, the world economy will grow just 3.1% this year, down sharply from a robust 5.9% in 2021.


Next year, the OECD predicts, would be even worse: The international economy would expand only 2.2%.


The OECD, made up of 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses. Figures from the organization showed fully 18% of economic output in member countries being spent on energy after Russia’s invasion of Ukraine helped drive up prices for oil and natural gas. That has confronted the world with an energy crisis on the scale of the two historic energy price spikes in the 1970s that also slowed growth and fueled inflation.


Inflation – largely fueled by high energy prices – “has become broad-based and persistent,” Cormann said, while “real household incomes across many countries have weakened despite support measures that many governments have been rolling out.”


It expects the United States, the world’s largest economy, to grow just 1.8% this year (down drastically from 5.9% in 2021), 0.5% in 2023 and 1% in 2024.


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