Budget snippet: IMF forecasts 2.9% global economic growth in 2023

Finance Minister Colm Imbert has said the International Monetary Fund's forecast for global growth is 3.2 per cent in 2022 and 2.9 per cent in 2023, significantly less than the 6.1 per cent in 2021.

He made the statement during the reading of the Estimates of Expenditure for Fiscal 2023 in the budget reading in Parliament on Monday.

Imbert said this would be exacerbated by expected recessions in the US and Europe.

"A US recession may be induced by an aggressive monetary-policy tightening in response to elevated inflation, and a recession in Europe will reflect surging energy prices and rationing.

"China may escape recession, but is expected to experience weaker than usual growth in 2022 due to repeated lockdowns, a housing correction and weakening external growth, and they are expected to see only a modest recovery in 2023."