The Managing Director of the International Monetary Fund (IMF) warned on Thursday that a global growth rate of below three percent is expected due to a continued slowdown in almost all of the world’s advanced economies.
Kristalina Georgieva, speaking ahead of the IMF and World Bank’s spring meetings, cited rising geopolitical tensions and persistently high inflation as factors that contribute to an elusive robust recovery.
Georgieva noted that the outlook will harm everyone, particularly the most vulnerable countries and people. While Asia’s emerging markets are expected to see significant increases in economic output, with India and China predicted to account for half of all growth this year, the gains will be offset by an expected slowdown in 90% of the world’s advanced economies.
The IMF chief predicted that world growth will remain at around three percent for the next half-decade, which is the lowest medium-term forecast since the 1990s. She warned that low-income countries are likely to face double shock from the high borrowing costs. She called on wealthier IMF members to provide more support.
Georgieva also stressed the need for continued vaccination efforts and targeted support for the sectors hardest hit by the pandemic, such as tourism, travel, and hospitality. She called for coordinated global action to address the challenges of climate change, inequality, and debt sustainability, warning that failure to act could exacerbate existing vulnerabilities and hinder economic recovery.
She concluded by stating that while the road ahead is uncertain, with strong policy support and international cooperation, there is hope for a resilient and inclusive global recovery.
