The managing director of the International Monetary Fund (IMF) has warned that global growth will fall below 3 percent this year due to the continued slowdown in the economies of the world’s developed countries. Kristalina Georgieva.
“A strong recovery remains elusive due to the prevailing high pace of inflation coupled with growing geopolitical tensions,” he said Thursday ahead of the IMF and World Bank spring meetings next week.
“It hurts everyone’s prospects, especially for the most vulnerable people and the most vulnerable countries,” Cristalina said in a speech in Washington. News from NDTV and Reuters
Global growth nearly halved to 3.4 percent last year. The main reason is that the recovery from the Covid-19 pandemic has stalled as the impact of Russia’s aggression in Ukraine spilled over into the global economy.
The IMF chief said world growth would likely remain at around three percent for the next half-decade, the lowest medium-term forecast since the 1990s.
Cristalina Low-income countries are expected to face a double whammy of high borrowing costs and reduced demand for their exports, which could lead to increased poverty and hunger. ‘About 15 percent of low-income countries are already in debt crisis, and another 45 percent are close to it.’
He is the IMF to support them in this situation the rich urged the members.
