IMF managing director Kristalina Georgieva expects the world economy to grow at less than 3 percent this year. India and China to account for half of the global growth in 2023.
International Monetary Fund warned that a sharp slowdown in the world economy last year following the raging pandemic and Russia’s military invasion of Ukraine would continue this year. “After a strong recovery in 2021 came the severe shock of Russia’s war in Ukraine and its wide-ranging consequences—global growth in 2022 dropped by almost half, from 6.1 to 3.4 percent”, Kristalina explained. reportsrecords.com
Economic activity is slowing in the United States and the Euro Area, where higher interest rates weigh on demand. About 90 percent of advanced economies are projected to see a decline in their growth rate this year. About 90 percent of advanced economies are projected to see a decline in their growth rate this year.
Some momentum comes from emerging economies—Asia especially is a bright spot. India and China are expected to account for half of the global growth in 2023.
“Poverty and hunger could further increase, a dangerous trend that was started by the Covid crisis. For low-income countries, higher borrowing costs come at a time of weakening demand for their exports. And their per-capita income growth stays below that of emerging economies. That is a severe blow, making it even harder for low-income nations to catch up”, IMF further said.
Today, banks are generally stronger and more resilient, and policymakers have been remarkably swift and comprehensive in their actions in recent weeks. Concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks. It is not the time for complacency.
