Global growth to fall below 3% in 2023: IMF chief
WASHINGTON -A continued slowdown in almost all the world’s advanced economies is expected to drag global growth below 3 percent this year, the International Monetary Fund’s managing director warned on Thursday.
“With rising geopolitical tensions, with inflation still running high, a robust recovery remains elusive,” Kristalina Georgieva said in a speech ahead of the IMF and World Bank’s spring meetings next week.
“That harms the prospects of everyone, especially for the most vulnerable people and most vulnerable countries,” she added at an event in Washington.
Global growth almost halved last year to 3.4 percent as the impact of Russia’s invasion of Ukraine rippled through the world economy, abruptly halting the recovery from the Covid-19 pandemic.
While Asia’s emerging markets are expected to see substantial increases in economic output — with India and China predicted to account for half of all growth this year — the good news will be outweighed by a slowdown expected for 90 percent of the world’s advanced economies.
“Growth remains historically weak -— now and in the medium term,” said Georgieva.
She added that world growth will likely remain at roughly three percent for the next half-decade, the lowest medium-term forecast since the 1990s.
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 poverty and hunger to increase, Georgieva said.
“About 15 percent of low-income countries are already in debt distress an additional 45 percent are near it,” she added, calling on wealthier IMF members to do more to provide support.