Citigroup forecast global growth to slow to less than 2 per cent next year, a projection by major financial institutions such as Goldman Sachs, Barclays and J.P. Morgan.
Strategists at the brokerage cited continued challenges from the COVID 19 epidemic and Russia-Ukraine war - which skyrocketed inflation to decades-high levels and triggered aggressive policy tightening as reasons behind the outlook.
Citi strategists, led by Nathan Sheets, believe that global performance is likely to be hampered by country-level recessions through the year ahead.
While Wall-Street expects the U.S. economy to grow 1.9 per cent this year, it is seen more than halving to 0.7 per cent in 2023, according to the Wall-Street investment bank.
The U.S. inflation will be 4.8 per cent next year, with the U.S. Federal Reserve's terminal rate being seen between 5.25 per cent and 5.5 per cent as a result of the year-on-year U.S. inflation.
Citi sees the UK and euro area falling into a recession by the end of the year, as both economies are facing tighter monetary and fiscal policies, as well as tighter monetary and fiscal policies.
For 2023, Citi projects the UK and euro area to contract 1.5 per cent and 0.4 per cent.
The brokerage expects the government to soften its zero-COVID policy in China, which is seen to drive a 5.6 per cent growth in gross domestic product next year.
Emerging markets, meanwhile, are growing 3.7 per cent with India's 5.7 per cent growth slower than this year's 6.7 per cent prediction, seen leading among major economies.