November 19, 2024

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The IMF has a bleak forecast for the global economy: “Without a course correction, we are already heading towards the ‘cold 20s’.”

The IMF has a bleak forecast for the global economy: “Without a course correction, we are already heading towards the ‘cold 20s’.”

Strong economic activity in the United States and emerging markets is expected to help push global growth by about 3% this year Head of the International Monetary Fund That's below the annual historical average and a warning sign about possible lackluster performance through the 2020s, he said Thursday.

“Without a course correction, we are already heading towards the ‘frozen 20s’ – a slow and disappointing decade,” Kristalina Georgieva, the organisation’s managing director, said in announcing the economic outlook and long-term outlook.

She said that global economic activity is weak compared to previous measurements, and debt is high, which poses major challenges to public finances in many parts of the world.

“The scars of the pandemic are still with us. She said the loss of global production since 2020 amounts to about $3.3 trillion, with the costs falling disproportionately on the most vulnerable countries.

The expected growth rate of just over 3% is slightly higher than last year's forecast. The historical average is 3.8%.

“Global growth is marginally stronger thanks to strong activity in the United States and in several emerging market economies,” Georgieva said.

The International Monetary Fund and the other lending agency, the World Bank, will hold their meeting Spring meetings Next week in Washington, where finance ministers, central bankers and policymakers will discuss the most pressing issues in the global economy.

The annual meeting will be held at a time when several conflicts threaten global financial stability, including the Russian invasion of Ukraine and the war between Hamas and Israel in Gaza.

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