Wells Fargo sees global growth slowing to 1.7% next year

The bank expects the global economy to grow at 1.7% in 2023, weaker than a 2.4% rise estimated for the current year, it said in a client note on Thursday. Wells Fargo sees the U.S. economy slipping into a "modest" recession beginning in mid-2023 and expects it to end the year with annual growth of 0.2%, much slower than a 2% rise estimated for 2022.

Wells Fargo is expecting the global economy to grow at a slower pace in 2023, joining other big American banks that have tempered their estimates this year and rekindled fears of a potential recession in the United States. The bank expects the global economy to grow at 1.7% in 2023, weaker than a 2.4% rise estimated for the current year, it said in a client note on Thursday.

Wells Fargo sees the U.S. economy slipping into a "modest" recession beginning in mid-2023 and expects it to end the year with annual growth of 0.2%, much slower than a 2% rise estimated for 2022. Wells Fargo also expects annual U.S. headline inflation moderating to 3.8% in 2023 from 7.7% currently.