Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

World economy faces weakest growth since 1990 - IMF

World economy faces weakest growth since 1990 - IMF

The global economy is set to grow at roughly 3% over the next five years - the slowest pace since 1990, the head of the International Monetary Fund has said.
Kristalina Georgieva said the path ahead was "rough and foggy" - and warned that cooperation to address the problems was becoming more difficult.

She spoke in Washington ahead of the IMF's annual meeting.

In her remarks, she called for more help for low-income countries.

"For the weakest members of our global family, additional support from wealthier countries is essential," she said, calling for countries to boost funds for the IMF, which makes low-cost loans to countries in need.

The organisation is bracing for a wave of requests for help or debt restructuring, as the shocks from Covid-19 crisis, the war in Ukraine and soaring cost of living continue to reverberate.

Last year, global growth dropped almost in half to 3.4%, following a post-pandemic surge in 2021.

That was below the 3.8% average growth of the last two decades. The slowdown has continued this year, despite strong job markets in countries such as the US.

The IMF said it expected growth to dip below 3% in 2023, with India and China accounting for more than half of the growth.

Roughly 90% of advanced economies are expected to see growth decline, reflecting the weight of higher borrowing costs, after central banks raised interest rates sharply to stabilise soaring prices.

For low-income countries, higher borrowing costs come at a time of weakening demand for their exports.

"That is a severe blow, making it even harder for low-income nations to catch up," Ms Georgieva said.

"Poverty and hunger could further increase, a dangerous trend that was started by the Covid crisis," she added.

While calling for support for vulnerable nations, Ms Georgieva said authorities should continue to raise interest rates to fight inflation - "so long as financial pressures remain limited".

"If that were to change, policymakers would face an even more complicated task, with difficult trade-offs between their inflation and financial stability objectives, and the use of their respective tools," she said.
Newsletter

Related Articles

Budapest Post
Close
0:00
0:00
Climate cultists thought they had sabotaged another beautiful event — then the cameraman had his revenge.
Nvidia CEO Huang says firms, individuals without AI expertise will be left behind
WPP Revolutionizes Advertising with NVIDIA's AI Powerhouse
Two US Employees Fired For Chasing Robbers Out Of Store As They Broke ''Company Policy''
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
Actor Tom Hanks told Harvard University graduates to be superheroes in their defense of truth and American ideals, and to resist those who twist the truth for their own gain
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
France Arrests 10 on Suspicion of Failing to Respond in Time to Migrant Drowning
Neuralink Receives FDA Approval for First-in-Human Clinical Study
Is Saudi Arabia the holiest place in the world? Ancient Hebrew Inscriptions from "The Mount Sinai Stand" Discovered in Saudi Arabia
Ukrainian Intelligence Official Admits to Assassination Attempts on Putin
WATCH THIS: democracy in Russia is so bad!
Ed Davey: It is possible for a woman to have a penis
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
TikTok Sues Montana Over Law Banning the App
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
Steve Jobs introducing Apple's iPhone, exactly 16 years ago.
China overtakes Japan as world's top car exporter
Elon Musk's SpaceX and Italy's Unipol join forces to help Italians hit by flooding
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
Syrian President Bashar al-Assad received a warm welcome at an Arab summit in Jeddah
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
Debt Ceiling Crises Have Unleashed Political Chaos
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
Vienna: Passenger Plays Hitler Speeches on Train, Causes Panic
The official tapes of Trump's deposition in the E. Jean Carroll battery (rape) and defamation case have been released.
King Charles III being crowned.
Newly released video of Donald Trump’s rape trial deposition:
Video: Ukraine MP Punches Russian Representative At Global Meet
El Paso mayor has declared a state of emergency
Russia accused Ukraine of attacking the Kremlin with drones in an attempt to kill Putin
Ahead of King Charles’ coronation, British guards rehearse in the middle of the night in London
Dutch court orders man who fathered 550 kids to stop donating sperm
Kim Kardashian Lookalike Christina Ashten Dies Of Cardiac Arrest, Hours After Plastic Surgery
Samsung has banned employees from using generative AI services such as ChatGPT
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
A Real woman
Vermont Man Charged with Stalking After Secretly Tracking Woman with Apple AirTag
Elon Musk Statements About Tesla Autopilot Could Be 'Deepfakes,' Lawyers Claim. Judge Evette Pennypacker Does Not Understand How Far and Advanced This Technology Became
Ukraine More Prepared for Counterattack as Reinforcements Arrive
UK Prime Minister Rishi Sunak and Italian Prime Minister Giorgia Meloni Discuss Migration, Defence, and Ukraine
Tucker Carlson is back, soon!
AT&T's Successful Test of Satellite-Based Phone Call Raises Possibility of Widespread Coverage
×