The International Monetary Fund warns of a decline in economic growth

There is a growing chance that global economic growth will fall below 2 percent. This is what warned Kristalina Georgieva, head of the International Monetary Fund. The last time this happened was during the coronavirus outbreak and the 2009 global financial crisis.

The world’s largest economies are grappling with the fallout from Russia’s invasion of Ukraine. As a result, food and energy costs have skyrocketed. In addition to high inflation, China in particular is still grappling with the impact of the coronavirus pandemic. Beijing’s strict policy to prevent the spread of the virus affects, among other things, the country’s productivity.

‘we are worried’

“Given the latest indications, we are concerned that this opportunity” will increase further, Georgieva said at the Reuters Next conference, referring to the fund’s latest outlook for 2023.

Also read | High interest rates discourage home seekers

The International Monetary Fund expects more than a third of the global economy to contract this year or next. In addition, the economies of the United States, the European Union and China are expected to experience recession. There may also be a downturn here in the near future. According to the International Monetary Fund, the situation in China is particularly worrying. Especially since it was believed that 35 to 40 percent of global growth came from the growth of the second largest economy in the world.