IMF Chief Expects Global Growth To Remain Below 3% In 2023, Says Poverty And Hunger Will Increase Further

Kristalina Georgieva said that the growth is expected to remain around 3 per cent for the next five years, calling it “our lowest medium-term growth forecast since 1990"

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday said that world economic growth is likely to slow in 2023, risking higher poverty and hunger rates globally. 

The IMF chief said that the world economy is expected to grow less than 3 per cent in 2023, down from 3.4 per cent last year, reported Associated Press. 

The report also quoted Kristalina Georgieva saying that the growth is expected to remain around 3 per cent for the next five years. She said it is “our lowest medium-term growth forecast since 1990, and well below the average of 3.8 per cent from the past two decades.”

She said slower growth would be a “severe blow,” making it even harder for low-income countries to catch up.

“Poverty and hunger could further increase, a dangerous trend that was started by the COVID crisis,” she said.

Georgieva made her remarks at a Meridian-Politico event ahead of the IMF and World Bank's spring meetings, which will take place in Washington next week and bring together decision-makers to discuss the most crucial challenges affecting the world economy.

The annual meeting is happening as central banks all around the world hike interest rates to combat persistent inflation and as a continuing debt crisis in emerging economies increases debt loads and hinders national growth.

The IMF MD also said persistently high-interest rates, a series of bank failures in the U.S. and Europe, and deepening geopolitical divisions are threatening global financial stability, reported AP.

Bloomberg quoted Georgieva saying that growth will drop in around 90 per cent of advanced economies this year as tighter monetary policy weighs on demand and lowers economic activity in the US and euro region. 

The conflict between Russia and Ukraine has strained relations between the US and China, intensified the world's inflation issue, and increased hunger on a worldwide scale.

“With rising geopolitical tensions and still-high inflation, a robust recovery remains elusive. This harms the prospects of everyone, especially for the most vulnerable people and countries” Georgieva said.