Emerging Asian markets may see a rebound as China’s expected reopening after nearly three years of Covid-19 curbs is set to lead a recovery in its own economy and others in the region, according to Morgan Stanley on Sunday.
The reports released on Sunday warned that the global economy will only grow by 2.2% in 2023, which is far lower than the 2.7% growth forecast by the International Monetary Fund.
It was estimated that China’s GDP would grow by 5% in 2023, which would be significantly higher than the average growth expected for emerging markets (3.7%), and far lower than the average growth expected in the Group of 10 developed countries (0.3%).
While the economies of the United Kingdom and the Eurozone are expected to enter recession next year, Morgan Stanley predicts that the United States may just avoid this fate because of its robust job market.
Morgan Stanley forecasts a sharp divide between developed economies “in or near recession” and emerging economies “recovering somewhat” next year, although an overall global recovery will likely remain difficult.