There is a growing possibility that global economic growth will fall below 2%. This is what Kristalina Georgieva, head of the International Monetary Fund warned. The last time this happened was during the coronavirus outbreak and the 2009 global financial crisis.
The world’s largest economies are grappling with the aftermath of Russia’s invasion of Ukraine. As a result, food and energy costs are skyrocketing. In addition to high inflation, China in particular is still struggling with the impact of the coronavirus pandemic. Beijing’s strict policy to prevent the spread of the virus affects, among other things, the country’s productivity.
‘We are worried’
“The chance of growth decelerating further and falling below 2% was one in four,” Georgieva told the Reuters NEXT conference, referring to the fund’s recent 2023 expectations. more.’
The IMF projects that more than a third of the global economy will contract this year or next. Furthermore, the economies of the United States, the European Union and China are expected to stagnate. There may also be some shrinkage here in the near future. The situation in China is particularly worrying, according to the IMF. Especially since it was estimated that 35 to 40 percent of global growth came from the growth of the world’s second largest economy.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
