The International Monetary Fund (IMF) announced on Friday that the world economy would experience one of the weakest periods of growth in the last few decades and will be less than three percent this year.
IMF Managing Director Kristalina Georgieva said that despite the strength of the labor market and consumer spending in most advanced economies, as well as the recovery related to the reopening of China, they expect growth of less than three percent for this year.
She added that such growth, of about three percent, will be for the next five years. As she said, the priority should remain the fight against inflation.
Georgieva expressed concern about public finances in most countries, as public debt has risen almost everywhere.
In 2023, global trade will grow by only 1.7 percent
This year’s trade will grow weaker than average. At the same time, the recovery in the next could be threatened by the continuation of the war in Ukraine, the flare-up of inflation, and the tightening of monetary policy, the World Trade Organization (WTO) announced.
The WTO said the trade volume would increase by 1.7 percent this year, raising the forecast from October by one percentage point.
In the past 12 years, the exchange has grown by an average of 2.6 percent annually, recalling that it grew by 2.7 percent last year, with weaker results in the last three months.
Next year should bring a strong recovery and almost double the growth rate of 3.2 percent, as economic growth should accelerate, estimates the WTO, warning, however, that the forecast includes a high level of uncertainty and numerous risks.