IMF Warns of Slower Economic Growth and Higher Poverty and Hunger Rates

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has said that the world’s economic growth is expected to slow in 2023, increasing poverty and hunger rates globally. According to the Associated Press, Georgieva stated that the world economy is anticipated to grow less than 3% in 2023, down from 3.4% in 2022. She also said that growth is likely to remain around 3% for the next five years, marking the lowest medium-term growth forecast since 1990 and well below the average of 3.8% from the past two decades.

Georgieva stated that a slower growth rate would be a severe blow, making it even harder for low-income countries to catch up. “Poverty and hunger could further increase, a dangerous trend that was started by the COVID crisis,” she said. Georgieva made her remarks ahead of the IMF and World Bank’s spring meetings, which will take place in Washington next week.

The IMF MD also stated that persistently high-interest rates, a series of bank failures in the US and Europe, and deepening geopolitical divisions are threatening global financial stability. Bloomberg reported that Georgieva warned that growth would drop in around 90% of advanced economies this year as tighter monetary policy weighs on demand and lowers economic activity in the US and euro region.

The conflict between Russia and Ukraine has strained relations between the US and China, intensified the world’s inflation issue, and increased hunger on a worldwide scale. “With rising geopolitical tensions and still-high inflation, a robust recovery remains elusive. This harms the prospects of everyone, especially the most vulnerable people and countries,” Georgieva said.

Staff Reporter