Citigroup expects global growth to slow to less than 2% next year.
According to Reuters, Citigroup's expectations came in line with the expectations of major financial institutions such as Goldman Sachs, Barclays and JPMorgan.
The brokerage's strategists cited the ongoing challenges posed by the Covid pandemic and the Russia-Ukraine war, which has pushed inflation to high levels and tightened monetary policy, as reasons behind the forecast.
Citi strategists, led by Nathan Sheets, said: We see global performance as likely to stagnate at the country level over the next year.
And while you expect the US economy to grow by 1.9% this year, growth is expected to more than halve, to 0.7% in 2023.
It also expects the US inflation rate on an annual basis to reach 4.8% next year, with the Fed's final interest rate expected to be between 5.25% and 5.5%.
Citi believes that the UK and the euro area will fall into recession by the end of this year, as both economies face energy constraints, along with tightening monetary and fiscal policies.
For 2023, Citi expects the UK economy and the eurozone economy to contract by 1.5% and 0.4%, respectively.
In China, the group believes that the government will ease its strict Covid-suppression policy, driving a 5.6% growth in GDP next year.
At the same time, emerging markets are expected to grow by 3.7%, with India growing by 5.7% - slower than this year's forecast of 6.7% - leading among major economies.
