New York, 8 April 2023 (TDI): On Thursday, the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva stated that the global economy will grow around 3 percent, while China and India will account for half of the global economic growth in 2023.

In her speech in Washington, D.C., Georgieva said that growth remains weak by historical comparison, both in the near and medium term.

Further, she highlighted that the momentum seems to appear from emerging economies specifically from Asia; also, China and India are expected to drive half of the global economy in the present year and beyond.

Besides these two countries, other countries are experiencing tougher growth in their economies. Other than that, about 90 percent of advanced countries may experience a decline in their economic growth, she added.

The IMF MD pointed out that the economic activity of the US and the Europ is slowing with higher interests in demand.

Noting this, she warned that achieving economic recovery may get difficult to achieve amid geopolitical tension and high inflation.

Since the Ukraine crisis poses a significant risk to global stability and Inflation, rates remain high due to tight labor markets and increasing wage pressures.

Moreover, IMF predicts slow global growth at 3% over the next 5 years, the lowest since 1990 and below the 2-decade average of 3.8%.

Considering the current situation, Georgieva said it is challenging to reduce poverty, recover from the economic impact of Covid, and create new opportunities.

Also read: China Leads International Economy

Therefore, she stressed that strengthening multilateral cooperation is crucial, particularly in key areas of mutual concern such as international trade, global financial safety, public health readiness, and the transition to renewable energy.

The IMF will provide additional information on its growth outlook when it releases the updated World Economic Outlook next week.

 

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