The International Monetary Fund expects global economic growth to dip below 3% in 2023 and to remain around 3% for the next five years, IMF Managing Director Kristalina Georgieva said in prepared remarks on Thursday.
That is the global lender’s lowest medium-term growth forecast since 1990, and well below the average growth of 3.8% seen in the past two decades.
Georgieva said strong and coordinated monetary and fiscal policy actions to respond to the COVID-19 pandemic and Russia’s invasion of Ukraine had prevented a much worse outcome in recent years, but growth prospects remained weak in both the near- and medium-term given persistently high inflation.
“Despite surprisingly resilient labor markets and consumer spending in most advanced economies, and the uplift from China’s reopening, we expect the world economy to grow less than 3 percent in 2023,” she said in prepared remarks ahead of next week’s spring meetings of the IMF and World Bank.
“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,” she said at an event hosted by Meridian House and Politico.
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