The bad news: global growth will not exceed 2% next year, the IMF predicts

2023 is rife with uncertainty and, above all, poor forecasts for global growth that will not pass the 2% milestone, according to International Monetary Fund (IMF).

According to IMF Director General Kristalina Georgieva, this short stature at the international level, this is due to the simultaneous recession in the European economy, China and USA.

Georgieva agreed that China is of greatest concern because it second force the world’s largest, making it a powerful engine for global growth, he told Reuters NEXT.

Although the IMF forecasts global economic growth at 2.7% next October, there is a high probability that the index will be adjusted.

In fact, in January, the international organization will again update the economic forecasts, and the results will already reflect what Georgieva said.

“The situation has been darker lately because of what we see in consumer and investor sentiment,” he said.

Slow down warning

In November International Monetary Fund warned that economic activity in Latin America will decline from the end of this year until next; For this reason, he recommended that all countries take measures to mitigate its effects.

Nigel Chalk, Acting Director of the IMF’s Western Hemisphere Department, warned that “downside risks dominate the outlook. Financial conditions could be even tougher than today. Inflation could be more sustainable.”

But in 2023, the situation will become “more complicated,” Nigel said. Because growth will slow down and “things can be worse than now.”