The IMF (International Monetary Fund) released a report stating facts that predicts that India and China to be the two countries that will account for half of the world’s economic growth this year. Kristalina Georgiva, the Chief of IMF, said in a statement that by the end of this year, the world economy will grow by less than 3% than the last year. She also said that half of the economic growth would be because of India and China.
In the briefing made to the media and news personnel, Kristalina said, “Some momentum comes from emerging economies, Asia especially, is a bright spot. India and China are expected to account for half of the global growth in 2023. But others face a steeper climb.” She revealed the facts to the Press Trust of India.
The lady chief of the IMF gave concerning insights on how the world economy will continue in the future. She said that the aftermath of the COVID-19 pandemic and the ongoing Russia-Ukraine war is to bring the world economy to a great decline. The current prediction made about economic growth is that it will grow by less than 3% from the previous years. Kristalina also said that the current forecast is the lowest medium-term growth since 1990, and it will be below the average growth percentage of the last two decades, which is 3.8%.
Stating the two devastating incidents that came into people’s lives as a horror show, the Chief of the IMF made concerning comments on how the world was healing from the big pandemic blow only to get hampered by the ongoing Russia-Ukraine war. The economic growth was settling after the pandemic, but it started to decline following the war between Russia and Ukraine.
“The global growth in 2022 dropped by almost half, from 6.1 to 3.4%,” stated Kristalina in one of her statements. Showing her concerns on the topic, the IMF Chief also talked about how low-income countries will become a liability for world economic growth. Her words showed a decent amount of stress when she jumped into the topic of low-income countries and how their participation will not help in world economic growth. She said that low-income countries would find themselves caught in challenging situations and account for slower growth.
The report released by the IMF states that low-income countries are facing low demands for their exports, with their per-capita income growth declining and going below emerging economies of the world. It raises concerns for the economics of the world. The forecast also reveals that poverty and hunger will climb once again after their initial climb during the pandemic. “Poverty and hunger could further increase, a dangerous trend that was started by the COVID crisis,” explained the Chief of the IMF, Kristalina Georgiva.
Georgia’s concerning and sharp remarks on the economic growth have reached millions of people just weeks before the IMF’s spring meetings with the World Bank. Here, the policymakers will discuss and address the pressing issues of economic growth and try to find a solution for them.
Sources – https://www.instagram.com/p/Cqu8kbmLH5p/
https://www.indiatoday.in/business/story/imf-india-china-global-growth-economy-2356849-2023-04-07
