International Monetary Fund (IMF) Managing Director Kristalina Georgieva announced the forecast for the global economy for the next five years: it turned out to be the worst since 1990, including due to growing geopolitical tensions, the war in Ukraine and high inflation.
In 2022, the expansion rate has almost halved, from 6.1% to 3.4%. In the next five years, the world economy will grow by an average of about 3% per year, said Georgieva. This is the lowest medium-term global GDP growth forecast since 1990, and below the 20-year average of 3.8%. India and China are expected to account for half of global GDP growth in 2023. At the same time, economic activity is slowing in the US and the eurozone, as higher bank rates affect demand. Growth is projected to slow in about 90% of advanced economies. Poverty and hunger may also increase further. Georgieva noted that this is a dangerous trend, which was initiated by the coronavirus pandemic.
The authorities need to fight inflation, protect financial stability, improve medium-term growth prospects, and unite in the fight against global inequality, the forecast says.