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<\/div>\nThe period of slower economic activity will be prolonged, the IMF chief said. (File)<\/p>\n<\/div>\n
Washington: <\/b><\/p>\n
The IMF chief on Thursday said that the world economy is expected to grow at less than 3 per cent this year, with India and China expected to account for half of global growth in 2023.<\/p>\n
International Monetary Fund (IMF) managing director Kristalina Georgieva warned that a sharp slowdown in the world economy last year following the raging pandemic and Russia’s military invasion of Ukraine would continue this year.<\/p>\n
The period of slower economic activity will be prolonged, with the next five years witnessing less than 3 per cent growth, “our lowest medium-term growth forecast since 1990, and well below the average of 3.8 per cent from the past two decades,” she said.<\/p>\n
“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,” she explained.<\/p>\n
“After a strong recovery in 2021 came the severe shock of Russia’s war in Ukraine and its wide-ranging consequences – global growth in 2022 dropped by almost half, from 6.1 to 3.4 per cent,” Georgieva said.<\/p>\n
Georgieva said slower growth would be a “severe blow,” making it even harder for low-income nations to catch up.<\/p>\n
“Poverty and hunger could further increase, a dangerous trend that was started by the COVID crisis,” she explained.<\/p>\n
Her comments come ahead of next week’s spring meetings of the IMF and the World Bank, where policy-makers will convene to discuss the global economy’s most pressing issues.<\/p>\n
The annual gathering will take place as central banks around the world continue to raise interest rates to tame galloping inflation rates.<\/p>\n
About 90 per cent of advanced economies are projected to see a decline in their growth rates this year, she said.<\/p>\n
For low-income countries, higher borrowing costs come at a time of weakening demand for their exports, she said.<\/p>\n
Georgieva added that while the global banking system had “come a long way” since the 2008 financial crisis, “concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks.”<\/p>\n
“Now is not the time for complacency.”<\/p>\n
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n<\/div>\n