Is the Global Economy on the Road to Recovery in 2023?

The global economy has been on a rollercoaster ride over the past couple of years, with the COVID-19 pandemic causing unprecedented disruption to businesses and economies worldwide. As we move into 2023, there are signs that the economy is beginning to recover, but is it enough to ensure a full recovery? This article will explore the current state of the global economy and the factors that are driving its recovery, and assess whether we can expect a full recovery in 2023. So, let’s dive in and find out!

Global Economic Recovery in 2023: An Overview

The State of the Global Economy in 2023

In 2023, the global economy is expected to continue its recovery from the pandemic-induced recession. However, the pace of recovery varies across countries and regions, and many challenges remain.

One of the main factors contributing to the uneven recovery is the disparity in access to vaccines. While some countries have been able to vaccinate a significant portion of their populations, others are still struggling to secure enough doses. This has led to a divergence in economic performance, with some countries experiencing a strong rebound while others continue to struggle.

Another challenge facing the global economy in 2023 is the rise of protectionism. As countries seek to protect their domestic industries and jobs, they are increasingly turning to protectionist measures such as tariffs and subsidies. This trend threatens to disrupt global supply chains and undermine the rules-based trading system that has underpinned the global economy for decades.

Furthermore, the global economy in 2023 is likely to be shaped by geopolitical tensions and uncertainty. The ongoing conflict between Russia and Ukraine, tensions between the US and China, and the continued fallout from Brexit are all sources of uncertainty that could impact the global economy.

Despite these challenges, there are also several positive developments that suggest the global economy is on the road to recovery in 2023. For example, many countries have implemented fiscal and monetary policies to support their economies during the pandemic, and these policies are now being gradually withdrawn as the recovery gains momentum. Additionally, many companies have adapted to the new reality of remote work and digital technologies, which is driving innovation and growth.

Overall, while the global economy in 2023 is likely to face ongoing challenges and uncertainties, there are also signs of a recovery taking hold. As countries continue to roll out vaccines, lift pandemic-related restrictions, and implement policies to support growth, the outlook for the global economy is gradually improving.

Factors Contributing to Economic Recovery

• Increased Vaccination Rates
  • Global efforts to increase vaccination rates have played a significant role in the economic recovery. As more people get vaccinated, the risk of COVID-19 transmission decreases, allowing businesses to reopen and resume operations. This has led to an increase in consumer spending and economic activity.
• Fiscal Stimulus Measures
  • Governments around the world have implemented various fiscal stimulus measures to support businesses and individuals affected by the pandemic. These measures have included cash transfers, tax relief, and subsidies, which have helped to maintain consumer spending and prevent a severe economic downturn.
• Technological Advancements
  • The pandemic has accelerated the adoption of new technologies, such as e-commerce, remote work, and digital payments. These technologies have enabled businesses to continue operating and serving customers, even in the face of lockdowns and social distancing measures.
• Improved Trade Relations
  • Efforts to improve trade relations between countries have also contributed to the economic recovery. Reduced trade tensions and increased cooperation have led to more favorable conditions for international trade, which has benefited both developed and developing economies.
• Shift towards Sustainable Development
  • The pandemic has also accelerated the shift towards sustainable development, with a growing focus on renewable energy, green infrastructure, and environmentally friendly practices. This shift has created new opportunities for businesses and investors, and has the potential to drive long-term economic growth.

The Role of Government Policies in Fostering Recovery

Fiscal Policies

Fiscal policies play a crucial role in shaping the economic recovery of a nation. These policies are designed to manage government expenditure and revenue in order to promote economic growth and stability. In the aftermath of a global economic downturn, fiscal policies can be instrumental in reviving consumer and business confidence, encouraging investment, and supporting employment. This section will delve into the various aspects of fiscal policies and their potential impact on the global economy in 2023.

Expansionary Fiscal Policies

Expansionary fiscal policies involve increasing government spending and reducing taxes to stimulate economic growth. These policies are often implemented during periods of economic downturn or recession to counteract the negative effects of declining consumer and business sentiment. Expansionary fiscal policies can be achieved through a range of measures, such as:

• Increased Government Investment: Governments can invest in infrastructure projects, research and development initiatives, and social programs to boost economic activity and create employment opportunities.
• Tax Cuts: Reducing tax rates can increase disposable income for households and businesses, leading to increased consumer spending and greater investment in the economy.
• Transfer Payments: Governments can provide financial assistance to individuals and businesses affected by the economic downturn, helping to maintain consumption and support businesses during difficult times.

Fiscal Consolidation

Fiscal consolidation refers to the process of reducing government expenditure and increasing tax revenues to reduce budget deficits and improve long-term economic stability. This process is often undertaken in response to high levels of government debt or to prevent the accumulation of debt in the future. Fiscal consolidation can be achieved through a range of measures, such as:

• Spending Cuts: Governments can reduce expenditure on discretionary programs and entitlements to reduce the budget deficit.
• Tax Reforms: Governments can implement tax reforms to increase tax revenue, such as closing loopholes, increasing tax rates, or introducing new taxes.
• Structural Reforms: Governments can implement structural reforms to improve the efficiency and effectiveness of government programs and reduce long-term costs.

The Impact of Fiscal Policies on the Global Economy

The impact of fiscal policies on the global economy can vary depending on the specific policies implemented and the overall economic environment. In general, expansionary fiscal policies can help to stimulate economic growth and reduce unemployment in the short term, while fiscal consolidation can improve long-term economic stability by reducing government debt. However, the effectiveness of fiscal policies depends on the ability of governments to implement them effectively and to coordinate with other countries to avoid negative side effects, such as currency devaluation or trade imbalances.

In 2023, the global economy is expected to continue its recovery from the COVID-19 pandemic, and fiscal policies are likely to play a critical role in supporting this recovery. Governments around the world are likely to implement a range of fiscal policies to promote economic growth, reduce unemployment, and improve long-term economic stability. However, the specific policies implemented and their impact on the global economy will depend on the economic conditions and policy priorities of individual countries.

Monetary Policies

Governments around the world have been implementing various policies to stimulate economic recovery in the wake of the COVID-19 pandemic. One such policy is monetary policy, which involves the manipulation of interest rates and the money supply to achieve certain economic objectives. In this section, we will explore the role of monetary policies in fostering economic recovery.

Monetary policies are implemented by central banks, which are responsible for managing a country’s money supply and interest rates. Central banks have a range of tools at their disposal to influence the economy, including:

• Open market operations: This involves buying or selling government bonds on the open market to increase or decrease the money supply.
• Reserve requirements: This is the amount of money banks must hold in reserve against their deposits. By raising or lowering reserve requirements, central banks can influence the amount of money banks have available to lend.
• Discount rate: This is the interest rate at which banks can borrow money from the central bank. By raising or lowering the discount rate, central banks can make it more or less expensive for banks to borrow money.

Central banks have been using these tools to support the economy during the pandemic. For example, the Federal Reserve in the United States has been using open market operations to purchase government bonds, which has increased the money supply and lowered interest rates. Similarly, the European Central Bank has been using quantitative easing, which involves purchasing government bonds and other assets to increase the money supply.

These policies have had a significant impact on the global economy. By lowering interest rates and increasing the money supply, central banks have made it easier for businesses and individuals to borrow money, which has helped to support economic activity. However, these policies also carry risks, such as inflation and asset bubbles, which must be carefully managed.

Overall, monetary policies have played a critical role in supporting the global economy during the pandemic. However, the effectiveness of these policies will depend on how well they are implemented and how well they are coordinated across different countries.

The Impact of Technological Advancements on Economic Recovery

Innovations in Key Sectors

The recovery of the global economy in 2023 is expected to be significantly influenced by technological advancements in key sectors. These innovations have the potential to drive economic growth, create new job opportunities, and enhance productivity. In this section, we will explore some of the key sectors that are expected to witness significant technological advancements in the coming years.

Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are expected to revolutionize various industries, including healthcare, finance, and manufacturing. AI-powered robots and automation systems are expected to increase efficiency and reduce costs in manufacturing, while ML algorithms are being used to analyze vast amounts of data in finance and healthcare, enabling better decision-making and improving patient outcomes.

Renewable Energy

The global economy’s recovery in 2023 is also expected to be driven by the increasing adoption of renewable energy sources. With concerns over climate change and environmental sustainability, there is a growing demand for clean energy solutions. The development of new technologies such as solar panels, wind turbines, and energy storage systems is expected to drive the growth of the renewable energy sector, creating new job opportunities and reducing reliance on fossil fuels.

Biotechnology and Genomics

Biotechnology and genomics are other sectors that are expected to witness significant technological advancements in the coming years. These industries are at the forefront of developing new treatments for diseases, improving crop yields, and enhancing human health. The development of new technologies such as gene editing and personalized medicine is expected to transform the healthcare industry, creating new job opportunities and improving patient outcomes.

Cybersecurity

Finally, cybersecurity is a sector that is expected to see significant technological advancements in the coming years. With the increasing reliance on technology and the internet, cybersecurity threats are becoming more sophisticated and widespread. The development of new technologies such as AI-powered cybersecurity systems and blockchain-based security solutions is expected to enhance cybersecurity measures, protecting businesses and individuals from cyber threats.

In conclusion, the recovery of the global economy in 2023 is expected to be driven by technological advancements in key sectors such as AI and ML, renewable energy, biotechnology and genomics, and cybersecurity. These innovations have the potential to drive economic growth, create new job opportunities, and enhance productivity, ultimately contributing to a stronger and more resilient global economy.

Job Creation and Economic Growth

Technological advancements play a significant role in job creation and economic growth

As technology continues to advance, it has the potential to significantly impact job creation and economic growth. By increasing productivity and efficiency, technological advancements can lead to increased output and higher economic growth.

Automation and artificial intelligence

One of the most significant impacts of technological advancements on the economy is the increasing use of automation and artificial intelligence. These technologies have the potential to replace human labor in many industries, which can lead to job losses in the short term. However, in the long term, they can also lead to increased productivity and efficiency, which can drive economic growth.

Creation of new industries and job opportunities

In addition to impacting existing industries, technological advancements can also create new industries and job opportunities. For example, the growth of the tech industry has created new job opportunities in fields such as software development, data analysis, and cybersecurity. Furthermore, advancements in fields such as renewable energy and biotechnology have the potential to create new industries and job opportunities in the future.

Government policies and investment in education and training

While technological advancements have the potential to create job opportunities and drive economic growth, it is important for governments to implement policies that support workers and communities affected by automation and AI. This includes investing in education and training programs to help workers develop the skills needed for new job opportunities, as well as providing support for workers who may be displaced by automation.

In conclusion, while technological advancements can have both positive and negative impacts on job creation and economic growth, it is important for governments and businesses to work together to ensure that the benefits of technological progress are shared by all members of society.

Challenges to a Fully Recovered Global Economy

Geopolitical Risks

The global economy’s path to recovery in 2023 is likely to be hampered by various geopolitical risks. These risks can be categorized into three main areas: political instability, trade disputes, and climate change.

Political Instability

Political instability can significantly impact the global economy, especially in regions with significant economic power. In 2023, there are several elections scheduled in countries that could cause political instability. For example, the German elections could result in a change of government, which would affect the European Union’s policies. Similarly, the presidential elections in the United States could lead to policy changes that could impact the global economy.

Trade Disputes

Trade disputes have been a significant challenge to the global economy in recent years. In 2023, the ongoing trade disputes between the United States and China could continue to affect global trade. Additionally, the United Kingdom’s exit from the European Union could lead to trade disputes between the UK and the EU.

Climate Change

Climate change is another significant challenge to the global economy in 2023. The impact of climate change on the global economy could be severe, with rising sea levels, more frequent natural disasters, and extreme weather conditions affecting global trade and economic activity.

In conclusion, the geopolitical risks facing the global economy in 2023 are significant. These risks include political instability, trade disputes, and climate change, which could impact the global economy’s recovery. It is essential for policymakers to address these risks to ensure a stable and sustainable global economy in the coming years.

Supply Chain Disruptions

Supply chain disruptions have been a major challenge for the global economy since the outbreak of the COVID-19 pandemic. These disruptions have resulted in production delays, shortages of raw materials, and increased costs for businesses.

The pandemic has led to the closure of factories and disrupted transportation networks, leading to a significant reduction in global trade. The restrictions on movement have also affected the flow of goods and services, causing shortages and delays in delivery.

One of the most significant challenges has been the disruption of the global supply chain for essential items such as medical equipment, personal protective equipment (PPE), and food. The pandemic has exposed the vulnerability of global supply chains, highlighting the need for more resilient and diversified supply chain networks.

In addition to the pandemic, natural disasters, geopolitical tensions, and trade wars have also contributed to supply chain disruptions. These disruptions have caused significant damage to businesses, resulting in lost revenue and reduced profits.

The impact of supply chain disruptions has been felt across all sectors of the economy, from manufacturing to retail to agriculture. Businesses have had to adapt to the new reality by implementing new strategies to manage supply chain risks, such as diversifying suppliers, increasing inventory levels, and investing in technology to improve visibility and transparency in the supply chain.

Despite these challenges, the global economy has shown remarkable resilience in the face of the pandemic. Many businesses have adapted to the new reality by embracing digital technologies and new business models. As the world continues to recover from the pandemic, it is essential to build a more resilient and sustainable global economy that can withstand future shocks and disruptions.

Regional Economic Recovery: A Comparative Analysis

Developed Economies

Overview of Developed Economies’ Recovery

In 2023, developed economies around the world have been experiencing varying degrees of recovery from the economic downturn caused by the COVID-19 pandemic. The United States, for instance, has been showing signs of a robust recovery, with a strong rebound in consumer spending and business investment. In Europe, the recovery has been more uneven, with some countries, such as Germany, performing relatively well, while others, like Italy and Spain, continue to struggle.

Factors Contributing to Developed Economies’ Recovery

Several factors have contributed to the recovery of developed economies. One key factor has been the rapid rollout of COVID-19 vaccines, which has allowed for the easing of restrictions and the reopening of businesses. Additionally, government stimulus packages and monetary policies have provided a crucial support to households and businesses, helping to maintain consumer spending and investment.

Challenges and Uncertainties in Developed Economies’ Recovery

Despite the overall recovery, there are still challenges and uncertainties facing developed economies. Supply chain disruptions and labor shortages have led to inflationary pressures, raising concerns about the sustainability of the recovery. Moreover, the emergence of new variants of the virus and the potential for further restrictions pose downside risks to the outlook.

Policy Responses to Address Challenges and Uncertainties

To address these challenges and uncertainties, governments and central banks in developed economies have been implementing various policy measures. In the United States, for example, the Federal Reserve has been signalling its intention to keep interest rates low to support the recovery, while also monitoring inflationary pressures. In Europe, the European Central Bank has been implementing a similar strategy, while also providing emergency liquidity support to vulnerable banks.

Overall, while developed economies have made significant progress in their recovery from the COVID-19 pandemic, there are still challenges and uncertainties that need to be addressed. Policymakers will need to carefully balance the need for continued support with the risk of overheating and inflation, while also being prepared to respond to any new developments in the pandemic.

Emerging Markets

In the wake of the COVID-19 pandemic, emerging markets have faced a unique set of challenges that have impacted their economic recovery prospects. While these countries have demonstrated resilience in the face of adversity, the road to recovery is not without its hurdles.

Fiscal Policy

Fiscal policy has played a crucial role in supporting emerging economies during the pandemic. Governments have implemented stimulus packages to cushion the blow of the economic downturn, but the sustainability of these measures is a concern. As fiscal deficits widen, the risk of debt distress looms large, particularly for countries with weak institutional frameworks.

External Imbalances

Emerging markets are particularly vulnerable to external imbalances, which have been exacerbated by the pandemic. A decline in remittances and a slump in commodity prices have put pressure on these economies, while the rising cost of servicing foreign debt has become a significant challenge. The weakening of currencies in many emerging markets has also heightened the risk of capital flight, further eroding their economic stability.

Debt Burden

The pandemic has led to a sharp increase in the debt burden of emerging markets. As governments have borrowed heavily to finance their stimulus measures, the debt-to-GDP ratio has soared. This has raised concerns about the sustainability of this debt, particularly in cases where the burden has fallen disproportionately on the private sector. The risk of a debt crisis is real, particularly in countries with limited fiscal space and weak governance structures.

Infrastructure Investment

Infrastructure investment has been a key priority for many emerging markets, as they seek to drive economic growth and reduce their reliance on traditional exports. However, the pandemic has disrupted these plans, with lockdowns and travel restrictions hampering the flow of goods and services. Moreover, the decline in remittances and foreign investment has reduced the resources available for infrastructure development, putting these projects at risk.

Digital Transformation

The pandemic has accelerated the need for digital transformation in emerging markets. As economies have shifted online, the need for digital infrastructure and connectivity has become more pressing than ever. However, the digital divide remains a significant challenge, with many emerging markets lacking the necessary resources to bridge the gap. The limited access to digital technologies has impeded economic growth and exacerbated inequality, making it more difficult for these countries to recover from the pandemic.

Overall, emerging markets face a complex set of challenges on the road to recovery in 2023. While these countries have demonstrated resilience in the face of adversity, the pandemic has exposed their vulnerabilities and highlighted the need for urgent action to address the root causes of their economic challenges.

The Future of the Global Economy: Projections and Forecasts

Expert Predictions and Analysis

The future of the global economy is a topic of much discussion and debate among experts. Many experts believe that the global economy is on the road to recovery in 2023, while others are more cautious in their predictions. Here are some of the key expert predictions and analysis on the topic:

• Growth projections: According to the International Monetary Fund (IMF), the global economy is projected to grow at a rate of 3.9% in 2023, which is up from the 3.3% growth rate projected for 2022. This growth is expected to be driven by a rebound in consumer spending and investment, as well as a recovery in global trade.
• Regional disparities: While the overall global economy is projected to grow, there are significant regional disparities in the recovery. For example, developing economies are expected to see stronger growth than developed economies, as they have been less impacted by the pandemic and have more room for fiscal and monetary policy maneuverability.
• Supply chain disruptions: One of the key challenges facing the global economy in 2023 is the ongoing disruption of global supply chains. Experts predict that these disruptions will continue to impact the economy, particularly in sectors such as manufacturing and retail.
• Inflation concerns: Another key concern for the global economy in 2023 is inflation. With central banks around the world injecting massive amounts of liquidity into the economy, there is a risk of inflationary pressures emerging. Experts predict that central banks will need to carefully manage inflationary risks in the coming year.
• Geopolitical risks: Finally, experts warn of the potential for geopolitical risks to impact the global economy in 2023. Tensions between major powers, such as the United States and China, could escalate and have a negative impact on global trade and investment. Additionally, the ongoing conflict in Ukraine and tensions in the South China Sea could also create uncertainty and volatility in the global economy.

Scenarios for Economic Growth and Recovery

The global economy is poised for a strong recovery in 2023, according to a variety of economic indicators and expert projections. However, the pace and nature of this recovery will vary across different regions and sectors. In this section, we will explore some of the scenarios for economic growth and recovery in the coming years.

Global Growth Drivers

Several factors are expected to drive global economic growth in 2023, including:

• Digital Transformation: The ongoing digital transformation of the global economy is expected to continue to drive growth in the coming years, as businesses and individuals increasingly rely on technology to improve productivity and connectivity.
• Sustainable Investment: As awareness of climate change and environmental issues grows, sustainable investment is expected to become an increasingly important driver of economic growth, as investors seek to align their financial goals with their values.
• Innovation: Continued innovation in fields such as renewable energy, biotechnology, and artificial intelligence is expected to drive economic growth and create new opportunities for businesses and entrepreneurs.

Regional Variations

While the global economy is expected to recover strongly in 2023, the pace and nature of this recovery will vary across different regions. Some key factors that will shape regional economic performance include:

• Trade Policy: Changes in trade policy, such as the ongoing renegotiation of trade agreements and the rise of protectionism, are expected to have a significant impact on regional economic performance in the coming years.
• Demographic Shifts: Changes in population demographics, such as aging populations and urbanization, will also play a role in shaping regional economic performance, as businesses and governments adapt to changing demands and needs.
• Geopolitical Tensions: Geopolitical tensions and conflicts, such as those in the Middle East and East Asia, are expected to continue to pose challenges for regional economic growth and stability.

Sector-Specific Factors

Finally, the recovery of the global economy in 2023 will also be shaped by factors specific to different sectors, such as:

• Technology: The technology sector is expected to continue to drive economic growth and innovation, as businesses and consumers increasingly rely on technology to improve productivity and connectivity.
• Energy: The energy sector is expected to undergo significant changes in the coming years, as the world transitions to a more sustainable and low-carbon economy.
• Manufacturing: The manufacturing sector is expected to benefit from ongoing innovation and digital transformation, as well as the growth of e-commerce and online retail.

Overall, while the global economy is expected to recover strongly in 2023, the pace and nature of this recovery will vary across different regions and sectors. Businesses and investors will need to pay close attention to these regional and sector-specific factors in order to navigate the challenges and opportunities of the coming years.

Key Takeaways

• Despite the ongoing challenges posed by the COVID-19 pandemic, many experts predict a steady recovery for the global economy in 2023.
• A major factor in this recovery is the widespread distribution of vaccines, which has led to a gradual normalization of economic activity in many countries.
• However, the recovery is expected to be uneven across different regions and sectors, with some emerging markets and industries facing continued uncertainty.
• Fiscal and monetary policies implemented by governments and central banks in response to the pandemic will continue to shape the economic landscape in the coming years.
• Geopolitical tensions and trade disputes may also impact the global economy, with potential ripple effects across various markets and industries.
• Overall, while the global economy is expected to continue its recovery in 2023, there are still many factors that could impact the pace and trajectory of this recovery.

The Path Forward: Policy Recommendations

• Emphasizing Fiscal Responsibility: Governments must balance the need for stimulus measures to support economic recovery with the imperative to maintain fiscal discipline. This may involve implementing structural reforms to enhance long-term growth prospects, while also ensuring that debt levels remain sustainable.
• Supporting Small and Medium-sized Enterprises (SMEs): SMEs play a critical role in job creation and economic growth. Policymakers should focus on providing targeted support to SMEs, such as streamlined access to financing, business development services, and tax incentives. This will help ensure that these businesses can continue to drive economic growth and create employment opportunities.
• Promoting Investment and Innovation: To sustain economic recovery, it is essential to encourage investment in research and development, as well as the adoption of new technologies. Governments can support these efforts by implementing policies that incentivize private sector investment in innovation, providing funding for research and development projects, and fostering collaborations between businesses, universities, and research institutions.
• Strengthening International Cooperation: In an increasingly interconnected global economy, international cooperation is crucial for promoting growth and stability. Policymakers should work together to develop coordinated responses to shared challenges, such as addressing climate change, managing cross-border financial flows, and promoting international trade. This will help to create a more stable and supportive global environment for economic recovery.
• Addressing Inequality and Social Unrest: As the global economy recovers, it is essential to ensure that the benefits of growth are shared more equitably. Policymakers should consider implementing policies that promote inclusive growth, such as investing in education and training programs, increasing access to affordable housing, and implementing progressive tax reforms. Addressing inequality and social unrest will help to create a more stable and sustainable foundation for long-term economic growth.

FAQs

1. What is the current state of the global economy in 2023?

As of 2023, the global economy has been on a slow but steady path to recovery. The COVID-19 pandemic caused a severe economic downturn in 2020, with many countries experiencing their worst recession since World War II. However, with the rollout of vaccines and the gradual easing of lockdown measures, economic activity has begun to pick up. While the recovery has been uneven across countries and sectors, overall, the global economy is projected to grow at a moderate pace in 2023.

2. What are the factors driving the recovery of the global economy in 2023?

Several factors are contributing to the recovery of the global economy in 2023. Firstly, the successful rollout of vaccines has allowed countries to gradually reopen their economies, boosting consumer spending and business investment. Additionally, fiscal and monetary policies implemented by governments and central banks have provided support to businesses and households, helping to mitigate the impact of the pandemic on the economy. Moreover, the global economy is benefiting from the continued digital transformation, which has facilitated remote work and helped businesses to maintain their operations during the pandemic.

3. Are there any major risks or challenges that could derail the recovery of the global economy in 2023?

Yes, there are several risks and challenges that could potentially derail the recovery of the global economy in 2023. One of the main risks is the emergence of new variants of the COVID-19 virus, which could lead to the reimposition of lockdown measures and disrupt economic activity. Additionally, rising inequality and poverty, due to the impact of the pandemic on vulnerable populations, could lead to social unrest and hinder the recovery. Furthermore, geopolitical tensions, trade disputes, and the ongoing climate crisis could also pose significant challenges to the global economy in 2023.

4. How is the recovery of the global economy impacting different sectors and regions?

The recovery of the global economy is impacting different sectors and regions in varying ways. Some sectors, such as technology and healthcare, have thrived during the pandemic and are expected to continue to grow in 2023. However, sectors such as tourism, hospitality, and aviation have been severely impacted and are expected to recover more slowly. In terms of regions, developed economies have generally fared better than developing economies during the pandemic, and are expected to recover at a faster pace in 2023. However, the recovery of developing economies is expected to gather momentum as vaccine distribution increases and economic activity normalizes.

World Economic Outlook | April 2023