WASHINGTON (AFP) – A continued slowdown in almost all the world’s advanced economies is expected to drag global growth below three per cent this year, the International Monetary Fund’s (IMF) 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 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 per cent as the impact of the 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 per cent 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.
