Monday, May 20, 2024

Global growth is expected to decline to under 3% in 2023 (IMF)

The Chief of the International Monetary Fund (IMF) has stated that global growth is expected to decline to under 3% by the year 2023.

The main reasons for this prediction include an aging population, increasing trade tensions, and a slowdown in productivity growth. The IMF chief also stated that countries should work together to address these issues in order to promote stability and growth in the global economy.

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that global growth is expected to fall below 3% this year due to the continued slowdown in almost all advanced economies. Speaking ahead of the IMF and World Bank’s spring meetings next week, Georgieva said that high inflation and rising geopolitical tensions were impeding a robust recovery.

She stated that this would harm the prospects of everyone, especially the most vulnerable people and countries. Asia’s emerging markets are predicted to account for half of all growth this year, but this good news will be outweighed by a slowdown expected for 90% of the world’s advanced economies. Georgieva said that low-income countries are expected to suffer a double shock from high borrowing costs and a decline in demand for their exports, which could cause an increase in poverty and hunger. She called on wealthier IMF members to provide more support.

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