The slowdown will be led by Europe, which is impacted most by the war, according to the IIF. The Eurozone economy will shrink by 2% following sharp declines in consumer and business confidence. In the US, the IIF expects gross domestic product to rise 1%, while Latin America is the “positive standout,” expanding 1.2%, as commodity exporters reap the benefits of high food and energy prices.
The single biggest driver for the global economy next year will be China, where loosening Covid restrictions are likely, according to the Washington-based IIF.
Brooks, the chief economist at the IIF, was among the first to call for the euro to reach parity with the dollar earlier this year. He also correctly predicted a rally in the Brazilian real before most, which turned him into a sensation in the country’s Twitter circles.
