By Gokhan Ergocun
ISTANBUL (AA) - Moody's on Thursday lowered its 2022 growth forecast for G20 countries from 3.6% to 3.1%, while increasing its inflation expectations.
"Main drivers of the slowing economic momentum are ongoing supply shocks that are stoking inflation and eroding consumer purchasing power, and a shift toward more hawkish monetary policy globally, accompanied by financial market volatility, asset repricing and tighter credit conditions," the international credit rating agency said in its Global Macro Outlook report.
Moody's stressed that the economic recovery in the post-pandemic era faces several challenges, including Russia's war on Ukraine and China's strong measures against resurgent coronavirus outbreak under its to zero-COVID policy.
The report forecasted that G-20 countries' economy would expand by 2.9% in 2023.
On average, they had secured 5.9% growth in 2021.
Over 2022 and 2023, GDP growth in advanced economies was projected as 2.6% and 2.1%, respectively, while it was 3.8% and 4.2% in emerging markets, and 2.5% and 2.3% for the eurozone.
By country, the report forecast the US economy growing by 2.8% and 2.3%, Germany by 1.8% and 2.6%, the UK by 2.8% and 1%, France by 2.2% and 1.4%, China by 4.5% and 5.3%, and Turkiye by 3.5% and 4%.
The report's only negative projection was of Russia, with minus 7% and minus 3% over the same period.