According to Kristalina Georgiva, Managing Director of the International Monetary Fund (IMF), India and China are anticipated to account for half of the global growth in 2023. She added, the global economy is expected to expand by less than 3% this year.
“Some momentum comes from emerging economies, especially Asia is a bright spot,” the IMF stated. In 2023, India and China are expected to contribute half of the global growth. However, others face a more challenging climb,” Georgieva told PTI.
She also warned that the Russia-Ukraine war and the COVID-19 pandemic, which led to a sharp slowdown in the global economy last year, could continue this year. The Russia-Ukraine emergency prompted the worldwide development rate in 2022 to drop by close to half from 6.1 percent to 3.4 percent, Georgieva added.
The IMF chief believes slower economic activity will continue because growth in the next five years will be less than 3%. “Our least growth rate in the medium-term forecast since 1990, far beneath the two-decade average of 3.8 percent.” the IMF chief stated.
Georgieva added that lower-pay nations would be injured with high getting costs all at once of debilitating interest for their commodities. She also mentioned that growth rates are expected to slow in about 90% of advanced economies by 2023.