The International Monetary Fund expects global economic growth to drop to less than 3 percent in 2023

Today, the International Monetary Fund predicted that global economic growth would decline to less than 3 percent this year, and to remain at about 3 percent over the next five years, in a sign of increasing risks of a downturn. This is the lowest medium-term growth rate projected by the fund since 1990, and far below the average growth of 3.8 percent over the past two decades. Kristalina Georgieva, Director of the International Monetary Fund, explained that strong monetary and fiscal policy measures after the (Covid-19) pandemic, and Russia’s war against Ukraine prevented much worse results in the past few years, but growth expectations remain weak due to inflation, which is constantly rising. She added that the collapse of banks in Switzerland and the United States revealed financial vulnerabilities that increased downside risks for the global economy. And the director of the IMF added "With political tension escalating, and as inflation continues to rise, a robust recovery remains elusive, hurting the outlook for all, especially for the most vulnerable people and countries.". Global growth nearly halved, to 3.4 percent in 2022 in the wake of the shock of the Russian war in Ukraine, down from 6.1 percent in 2021. And last January, the Fund had already forecast global growth of just 2.9 percent for the year, half a percentage point lower than growth. The year 2022, due to the repercussions of the war in Ukraine and the continuous high inflation.