Page 6 - Policy Economic Report - February 2023

Policy and Economic Report:
Oil & Gas Market

Figure- Global growth

• Amid high inflation and tighter monetary policy, the United States of America face sharp growth
slowdown in 2023. After expanding by 5.7 % in 2021, growth of gross domestic product (GDP) in
the United States fell to 1.8 % in 2022 and is forecast at only 0.4 % in 2023.

• Growth in the GDP of the European Union is forecast at only 0.2 % in 2023, after a surprisingly
strong expansion of 3.3 % in 2022, when further relaxation of COVID-19 restrictions and the
release of pent-up demand boosted household spending. Despite massive policy efforts, the
region is still vulnerable to disruptions in energy supplies and gas shortages, owing to the Russia-
Ukraine war crisis.

• In China, growth is projected to pick up in 2023 due to the easing of COVID-19-related restrictions
but will likely remain below the pre-crisis trend. With the Government abandoning its zero-
COVID-19 policy in late 2022, and easing monetary and fiscal policies, the economy is projected
to expand by 4.8 % in 2023.

• Growth prospects in many transition and developing economies have deteriorated due to
protracted geopolitical tensions, high inflation, waning monetary and fiscal support, rising
borrowing costs and projected slowdowns in major trading partners.

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