The world economy is expected to grow at less than three per cent this year and India and China are expected to account for half of global growth in 2023, the IMF chief said on Thursday. International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that last year the global pandemic and the Ukraine-Russia war brought the world economy into sharp recession and this trend will continue this year as well.
The period of slow economic activity will be long, with the next five years seeing less than 3 percent growth, he said. Our lowest medium-term growth forecast since 1990 and well below the average of 3.8 per cent for the past two decades. He pointed out that some of the momentum comes from emerging economies, with Asia in particular being a rising point.
India and China are expected to account for half of the global growth in the year 2023. But others face a steeper ascent.
Georgieva said that a strong recovery in 2021 would be followed by severe shocks from Russia’s war in Ukraine and its wider consequences. Global growth in 2022 is projected to drop by almost half, from 6.1 to 3.4 percent.
Georgieva said slowing growth would be a severe blow, making it even harder for low-income countries to catch up. He said that poverty and hunger could increase further. A dangerous trend started with the Corona crisis. His comments come ahead of meetings of the IMF and World Bank next week, where policy-makers will discuss the most pressing issues of the global economy.
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