“Less than 3% this year”…expected long-term low growth
International Monetary Fund (IMF) President Cristina Georgieva said on the 6th (local time), “The IMF forecasts that the global economic growth rate will remain at 3% for the next five years.” The International Monetary Fund (IMF) previously predicted the global economic growth rate to be 2.9% this year in January, and this remark predicts that the low growth will be prolonged at 3% for the next five years.
“This is the lowest medium-term growth outlook since 1990,” Georgieva said in a conversation held in Washington, DC ahead of the IMF and World Bank (WB) spring general meetings. He further explained that in the 10 years before Corona 19, the global economy grew at an average annual rate of 3.8%.
The IMF will release an updated World Economic Outlook (WEO) report on the 11th. In a January report, the global economy was projected to grow at 2.9% this year. “We expect global economic growth to be less than 3% this year,” Georgieva said. “Growth is still historically weak.”
He predicted that 90% of developed countries, including the United States and the Eurozone, would suffer from economic activity slowing due to high interest rates, while low-income countries would suffer more from increased funding costs and reduced exports.
He went on to say that the war in Ukraine and geopolitical tensions might lead to a drop in trade, which might reduce global gross domestic product (GDP) by up to 7% in the long term. He warned that if you add in the effects of technology decoupling, some countries might lose up to 12% of their GDP. “Countries can continue to trade and make it pragmatic to strengthen supply chains while protecting their economies and national security,” he said.
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