Global Courant 2023-04-11 11:10:23
The spring meetings of the World Bank and International Monetary Fund kick off this week with an ambitious reform and fundraising agenda that is likely to be eclipsed by concerns about high inflation, rising geopolitical tension and financial stability.
“Despite the remarkable resilience of consumer spending in the United States, in Europe, despite the boost from China’s reopening, global growth will remain below three percent” in 2023, IMF Managing Director Kristalina Georgieva said in a press conference on Monday.
The fund now expects global growth to remain around three percent for the next half decade, its lowest medium-term forecast since the 1990s.
“Nearly 90 percent of the world’s advanced economies will experience a slowdown in growth this year, while emerging markets in Asia are expected to see a significant increase in economic output, with India and China expected to account for half of all growth. Georgieva said last week.
Low-income countries are expected to suffer a double whammy from higher borrowing costs and a drop in demand for their exports, which Georgieva said could fuel poverty and hunger.
Updated growth projections released in the IMF’s World Economic Outlook on Tuesday will provide a broader look at how countries are faring, with additional releases to detail fiscal and financial challenges for the global economy.
The World Bank, which forecast a gloomier economic picture than the IMF earlier this year, is raising its forecast for global growth slightly in 2023 from 1.7 percent in January to two percent, boosted by the reopening China’s economy, the bank’s president, David Malpass, told a press conference on Monday.
Global Courantl
