GENERAL NEWS
Global growth to slow down in 2023
Global growth has slowed sharply and the risk of financial stress in emerging market and developing economies ( EMDEs ) is intensifying amid elevated global interest rates , according to the World Bank ’ s latest ‘ Global Economic Prospects ’ report .
“ Global growth is projected to decelerate from 3.1 % in 2022 to 2.1 % in 2023 . In EMDEs other than China , growth is set to slow to 2.9 % this year from 4.1 % last year . These forecasts reflect broad-based downgrades ,” said the World Bank .
“ The surest way to reduce poverty and spread prosperity is through employment — and slower growth makes job creation a lot harder ,” commented new World Bank Group President , Ajay Banga . “ It ’ s important to keep in mind that growth forecasts are not destiny . We have an opportunity to turn the tide but it will take us all working together .”
According to the World Bank , with increasingly restrictive global credit conditions , one out of every four EMDEs has effectively lost access to international bond markets . The squeeze is especially acute for EMDEs with underlying vulnerabilities such as low creditworthiness . Growth projections for these economies for 2023 are less than half those from a year ago , making them highly vulnerable to additional shocks .
“ The world economy is in a precarious position ,” said Indermit Gill , the World Bank Group ’ s Chief Economist and Senior Vice President . “ Outside East and South Asia , it is a long way from the dynamism needed to eliminate poverty , counter climate change and replenish human capital . In 2023 , trade
will grow at less than a third of its pace in the years before the pandemic . In emerging markets and developing economies , debt pressures are growing due to higher interest rates . Fiscal weaknesses have already tipped many low-income countries into debt distress . Meanwhile , the financing needs to achieve the sustainable development goals are far greater than even the most optimistic projections of private investment .” The latest forecasts indicate that the overlapping shocks of the pandemic , the Russian invasion of Ukraine and the sharp slowdown amid tight global financial conditions have dealt an enduring setback to development in EMDEs , one that will persist for the foreseeable future . By the end of 2024 , economic activity in these economies is expected to be about 5 % below levels projected on the eve of the pandemic . In lowincome countries — especially the poorest — the damage is stark : in more than one-third of these countries , per capita incomes in 2024 will still be below 2019 levels . This feeble pace of income growth will entrench extreme poverty in many low-income countries .
Advanced economies
In advanced economies , growth is set to decelerate from 2.6 % in 2022 to 0.7 % this year and remain weak in 2024 , the report says .
“ After growing 1.1 % in 2023 , the U . S . economy is set to decelerate to 0.8 % in 2024 , mainly because of the lingering impact of the sharp rise in interest rates over the past year and a half . In the euro area , growth is forecast to slow to 0.4 % in 2023 from 3.5 % in 2022 , due to the lagged effect of monetary policy tightening and energy-price increases ,” continued the report .
China ’ s economic activity bounced back in the first quarter of 2023 with the removal of mobility restrictions and a surge in spending on services . However , growth momentum has slowed since April , indicating that China ’ s recovery remains fragile and dependent on policy support , according to ‘ Sustaining Growth through the Recovery and Beyond ’, the latest China Economic Update released in June by the World Bank .
“ China ’ s GDP growth is projected to rise to 5.6 per cent in 2023 , led by a rebound in consumer demand . Capital spending in infrastructure and manufacturing is expected to remain resilient . Meanwhile , external demand is expected to remain soft with weak global growth impacting exports ,” said the report .
Regional outlooks
East Asia and Pacific : Growth is expected to increase to 5.5 % in 2023 and then slow to 4.6 % in 2024 . Europe and Central Asia : Growth is expected to edge up slightly to 1.4 % in 2023 before increasing to 2.7 % in 2024 . Latin America and the Caribbean : Growth is projected to slow to 1.5 % in 2023 before recovering to 2 % in 2024 . Middle East and North Africa : Growth is expected to slow to 2.2 % in 2023 before rebounding to 3.3 % in 2024 . South Asia : Growth is projected to edge down to 5.9 % in 2023 and then to 5.1 % in 2024 .
READ
Sub-Saharan Africa : Growth is expected to slow to 3.2 % in 2023 and rise to REPORT 3.9 % in 2024 . n
Press hardening gains ground
From the left , Sergio Piersanti , Project Manager ; Paolo Montefiore , Plant Manager ; and Rachouan Hassine , Quality Manager at U . form ’ s facility in Castellalto , Italy .
AP & T recently received an order from U . form for another press hardening line . U . form manufactures car parts for several automotive manufacturers in Europe and the U . S . The new press-hardening line will be installed at U . form ’ s U . S . production facility in Detroit , Michigan ( USA ) by the beginning of 2024 .
“ With this new line we will be able to improve production capacity , produce new types of parts and increase product array and quality ,” said Renzo Triaca , CEO of U . form .
It will be the company ’ s seventh presshardening line from AP & T . Of the previous lines , three are operating at U . form ’ s facilities in Italy , one in Poland and one in Detroit .
Another line will be delivered to U . form in Mexico this Autumn .
U . form is based at Castellalto , Italy , and has established manufacturing sites in Italy , Poland , the U . S . and Mexico . It manufactures parts for several automotive manufacturers , offering services such as press hardening , laser cutting , shot blasting and welding .
“ We have been working with AP & T for many years and found satisfying solutions both for financial and timeline items , so it is a business partner that fully meets our needs ,” added Renzo Triaca .
The new order consists of a hydraulic press with 1,600 tons of press force and capacity to press large parts , automation equipment , a control system , line integration and commissioning . n
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6 | ismr . net | ISMR July / August 2023