Global economic growth likely to drop below 2 percent – Wel.nl

WASHINGTON (AP/AFP) – The chances of global economic growth falling below 2 percent are increasing. Kristalina Georgieva, head of the International Monetary Fund, has warned. The last time this happened was during the coronavirus outbreak and the 2009 global financial crisis.

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

“There is a one-in-four chance that growth will slow further and fall below 2 percent,” Georgieva told the Reuters Next conference about the fund’s latest 2023 expectations. Increase even more.”

worry

The IMF expects a third of the global economy to shrink this year or next. Also, the economies of the United States, European Union, and China are expected to experience stagnation. There may also be contraction here in the future. According to the International Monetary Fund, the situation in China is particularly worrying. In particular, it was estimated that 35 to 40 percent of global growth came from the growth of the world’s second largest economy.

The IMF will update its economic outlook in January.