The International Monetary Fund continues to expect weak growth in the global economy. “The global economy has proven to be remarkably resilient,” emphasized IMF chief Kristalina Georgieva during a speech in Abidjan, Ivory Coast. But despite strong demand for services and progress in combating high consumer prices, the pace of global growth remains quite weak. It is well below 3.8 percent – that was the annual average from 2000 until shortly before the pandemic.
Growth prospects have also deteriorated in the medium term. There are big differences. Things look better in the USA or India, for example, but worse in China. The world has lost around 3.7 trillion dollars (3.5 trillion euros) in economic output since 2020 due to “successive shocks,” said Georgieva, for example with a view to the pandemic or the Russian war of aggression in Ukraine. These losses are distributed very unevenly. The poorest countries are hit hardest. Combating high inflation remains a priority.
The IMF plans to present its new economic outlook on Tuesday at the annual meeting in Marrakech, Morocco. In July, the fund presented a growth forecast of 3 percent each for 2023 and 2024. Last year the global economy grew by 3.5 percent.
