After repeatedly warning of a recession, the International Monetary Fund (IMF) this time gave a different outlook to its latest economic forecast.
For the first time in a year, the IMF raised its global growth forecast on the back of resilient US spending and China's economic recovery.
Gross domestic product (GDP) is expected to grow 2.9% in 2023, up from the forecast for 2.7% growth it made in October.
Although it is down from 3.4% growth in 2022, the IMF predicts the economy will bottom out this year before rebounding to 3.1% in 2024.
According to the IMF in its updated world economic outlook, rising interest rates and the Russia-Ukraine war will continue to weigh on economic activity this year amid continued inflationary pressures.
The institution also raised 0.1% higher its 2023 growth forecast for developed countries to 1.2%, down from 2.7% expansion in 2022.
In the G7 group, the UK economy is forecast worst with an expected contraction of 0.6%, while the United States may grow by 1.4%.
The IMF sees a 'small chance' that a US recession can be avoided this year, even if the unemployment rate rises to 5.2% by next year from 3.7% this year.
In addition, China and India are expected to account for about half of the world's growth in 2023.
