The world economy is expected to grow less than 3% this year, the International Monetary Fund warned Thursday, dragged by a continued slowdown in almost all the world’s advanced economies.
“With rising geopolitical tensions, with inflation still running high, a robust recovery remains elusive,” IMF Managing Director Kristalina Georgieva said.
“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% as the impact of Russia’s 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% of the world’s advanced economies.
“Growth remains historically weak – now and in the medium term,” said Georgieva.
She said growth is expected to remain around 3% for the next five years, calling it “our lowest medium-term growth forecast since 1990, and well below the average of 3.8% from the past two decades.”
She said slower growth would be a “severe blow,” making it even harder for low-income nations to catch up.
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