Wells Fargo sees global growth slowing to 1.7% next year

WELLS FARGO is expecting the global economy to grow at a slower pace in 2023, joining other big American banks that have tempered their estimates this year and rekindled fears of a potential recession in the United States.

The bank expects the global economy to grow at 1.7 per cent in 2023, weaker than a 2.4 per cent rise estimated for the current year, it said in a client note on Thursday (Dec 8).

Wells Fargo sees the US economy slipping into a “modest” recession beginning in mid-2023 and expects it to end the year with annual growth of 0.2 per cent, much slower than a 2 per cent rise estimated for 2022.

Wells Fargo also expects annual US headline inflation moderating to 3.8 per cent in 2023 from 7.7 per cent currently. REUTERS