Taken from AFP Washington
The head of the International Monetary Fund (IMF), Kristalina Georgieva, warned today that the possibility of global growth falling below 2% , a level last recorded during the coronavirus outbreak and the 2009 global financial crisis, is increasing as major economies slow down.
"The probability of growth slowing further, falling below 2 percent, is one in four," the head of the International Monetary Fund said at the Reuters NEXT conference, referring to the multilateral institution's recent expectations for 2023.
His comments come as the world's major economies grapple with the fallout from Russia's invasion of Ukraine, which sent food and energy prices soaring, along with rising inflation and a slowdown in China.
"When we look at the most recent indicators, we are concerned that this probability could increase a little more," he added.
The IMF expects more than a third of the global economy to contract this year or next, and for the United States, the European Union, and China to stagnate.
Deceleration
Georgieva also said she was concerned about a "simultaneous slowdown in the United States, Europe and China," adding that the slowdown in growth in China is particularly significant.
The world has relied on China to boost the economy, he said, noting that "around 35 or 40 percent of global growth" should come from the world's second largest economy.
