IMF: global economic growth in the next five years will be the lowest since 1990

The global economy faces difficult years with the lowest projected growth since the 1990s, warns the International Monetary Fund (IMF).

According to IMF Director Kristalina Georgieva, the world economy will grow by about 3% in the next five years.

“It will make it difficult to reduce povertyheal the economy from the wounds of the crisis and provide new and better opportunities for everyone,” Georgieva said in a public speech in Washington.

By 2023 alone, the global economy is expected to grow at less than 3%, a year in which about 90% of advanced economies will experience slower growth.

Growth forecast for IMF in the medium term, this is the lowest rate since 1990 and well below the average of 3.8% over the past two decades, Georgieva noted.

Georgieva notes that the past few years have been “like climbing one big hill after another, only to find that there are many more ahead,” first due to Covid, then due to the war in Ukraine and high inflation.

“Until now, we have shown ourselves to be persistent climbers. But the path forward, and especially the path back to sustainable growth, is rocky and tangled, and the ropes that hold us together may be weaker now than they were a few years ago. ” he said. .

In addition, he noted that there were “marked differences” between groups of countries. Thus, growth will come from emerging market economy and “Asia is a particularly bright spot”. “Half of global growth in 2023 is expected to come from India and China,” he said.

“But others are facing steeper growth. Economic activity is slowing in the United States and the euro area, where higher interest rates are hurting demand,” he explained.

Georgieva also mentioned banking crisis it came in recent weeks after the collapse of US banks Silicon Valley and Signature and said it showed “that the banking sector has come a long way since the 2008 global financial crisis.”

“Today, banks are generally stronger and more resilient, and the authorities have acted surprisingly quickly and thoroughly in recent weeks,” said Georgieva, noting that, however, “concerns remain about vulnerabilities that could be hidden” and “now is not the time to complacency.

Georgieva believes there are three priorities for action to improve growth expectations in both the short and medium term, starting with fighting inflation and ensuring financial stability.

On this occasion, he believed that “it cannot be height reliable without price stability and without financial stability.”

(According to the EFE agency).