The International Monetary Fund (IMF) strives to promote economic growth in its 190 member nations. This year’s anticipated growth is less than 3%, compared to 3.4% in 2022.
According to the head of the International Monetary Fund (IMF), high-interest rates, bank failures in the United States. And geopolitical divisions in Europe will cause the global economy to grow less than 3% in 2023.
The growth is lower than last year’s 3.4% and the average of 3.8%, increasing hunger and worldwide deprivation.
“Poverty and hunger could worsen,” IMF chief Kristalina Georgieva told Politico on Thursday.
According to the fund, approximately 15% of low-income countries are currently in debt, and another 45% confront high debt levels.
Emerging from the COVID-19 pandemic, Ms. Georgieva acknowledged that countries have been “resilient climbers” in the face of disruptions to global trade and food supply, but she added that “the road ahead – and particularly the road back to robust growth – is rough and hazy.”
She stated, “Now is not the time for complacency.” We live in a more shock-prone environment, and we must be prepared.
Due to the IMF’s economic projections, over fifty non-governmental organizations and labor unions have demanded that more Special Drawing Rights, an IMF international reserve asset, be allocated to low-income countries.
These funds could be used for food and medication, as well as to “prevent destructive economic crises” in developing nations.
According to the report, the likelihood of a recession varies dramatically between nations.
Ms. Georgieva characterized India and China as being in a “bright spot,” accounting for half of the global growth in 2023, whereas 90% of other developed nations, such as the United States and those in the European Union, are facing high inflation as they reevaluate their trade relationships with China.
After Russia invaded Ukraine in February 2022, tensions increased with China, despite Chinese President Xi Jinping’s promise of friendship to Russian President Vladimir Putin.
