World Economy

Name: Neha Thakare (51)

Sakshi Singh (49)
Taha shah (46)
Nadeem khan (20)
Monal Chaturvedi (05)
St. John College of engineering and management, palghar
DEFINITION

• World Economy is the economy of all

humans of the world referring to the
global economic system, which includes all
economic activities which are conducted
both within and between nations,
Including production, consumption,
economic management, work in general,
exchange of financial values and trade of
goods and services.
THE THREE REGULATORY PILLARS OF THE WORLD ECONOMIC
ORDER
1.World Bank
2.The International Monetary Fund (Imf)
Three main function of IMF

1. Surveillance
Gathering data and assessing economic policies of
countries.

2. Financial Assistance
• Precautionary credit lines to members with good
macro economic management (Flexible Credit Line)

• Loans to member countries with balance of payments

problems to support policy adjustment and reform

• Concessional support to low income countries

3. Technical Assistance
IMF provides expertise and training to member
countries to help strengthen capacity to design and
implement effective policies.
 3. World Trade Organization

• Established on January 1, 1995 and is headquartered

Geneva, Switzerland
• Involved in 98% of the world trade
• package of agreements which set international rules in the field of trade
• platform for multilateral negotiations aimed at the development of
international trade rules and the reduction of trade barriers
• dispute settlement system
• source of information that ensures transparency in the application of
trade policy measures by all Members
WORLD ECONOMY OUTLOOK 2023

• In its latest world economy outlook,

released on the eve of the annual fund
bank meeting, the IMF maintained the
global growth forecast at 3.4% for 2022,
but lowered the projection for 2023 to
2.7% & high the projection for 2024 to
3.1%, from its January 2023 forecast.
GLOBAL ECONOMY NEARING RECESSION IN
2023
• The IMF estimates that one-third of the global economy will experience a
recession this year 2023, leading to slower economic growth than in the
past year.

• This is due to a decline in growth in major economies across the globe.

• The US, China, and Europe- three of the world’s biggest economies, show
signs of weaker growth, and the overall global economy seems to be
reaching close to a recession

• The World Bank's projections for global economic growth are 1.7% in
2023 and 2.7% in 2024.
Reasons:
1. Russian invasion of Ukraine
2. Post pandemic situation & China’s zero covid policy
CONCLUSION

• The global economy refers to the interconnected worldwide economic

activities that take place between multiple countries.
• These economic activities can have either a positive or negative impact on
the countries involved.
• The world economy is a collaboration of countries worldwide that are
tied together by economic activity.
• When an event happens in one country, the effects can be felt on the
economies of other countries.
• This concept of being tied together allows for trade between different
countries known as globalization.