New Delhi (India), 7th April 2023: The head of the IMF stated on Thursday that less than 3% global economic growth is anticipated this year, with China and India estimated to account for 50% of that growth in 2023.
IMF Managing Director Kristalina Georgieva forewarned that the severe slowdown in the global economy that occurred last year as a result of the raging epidemic and Russia’s armed invasion of Ukraine would persist this year.
The slowdown in economic activity will continue, with less than 3% growth expected over the next five years. She said, “our lowest medium-term growth forecast since 1990, and well below the average of 3.8 per cent from the past two decades.”
Kristalina further added, “Some momentum comes from emerging economies — Asia especially is a bright spot. India and China are expected to account for half of global growth in 2023. But others face a steeper climb.”
“Global growth in 2022 fell by almost half, from 6.1 to 3.4 percent, following a strong recovery in 2021 due to the severe shock of Russia’s war in Ukraine and its far-reaching effects,” Georgieva added.
Slower growth, according to Georgieva, would be a “severe blow,” making it even more difficult for low-income countries to catch up. The COVID crisis, she said, initiated a hazardous trend in which poverty and hunger could further rise.
