The International Monetary Fund expects global growth to fall below expectations in 2023.

International Monetary Fund managing director Kristalina Georgieva said global growth expectations for 2023 have been lowered due to rising risks of growth falling below 2%.

The International Monetary Fund expected 2.7% growth in 2023 in its World Economic Outlook report, indicating the possibility of growth below 2%.

“When we look at the latest figures, we fear that this probability will increase due to the simultaneous slowdown in the US, Europe and China,” Georgieva said in an online speech as part of the Reuters Next forum.

The International Monetary Fund plans to update its forecasts for 2023 in the month of January, but its general manager noted that the economic situation “has worsened recently based on what we’re seeing, whether it’s in terms of consumer sentiment or investor sentiment.” “

And in the event that global economic growth falls below 2%, this will be the first time since 2009 (-1.3%), if we exclude the consequences of the spread of the Covid-19 epidemic in 2020, when global gross domestic product fell by 3. 3%.

Georgieva recalled that the situation in the world is not yet positive, especially in light of the consequences of the crisis in Ukraine for the European economy, as well as the consequences of the “zero Covid” policy in China.

She said: “We expect China to grow at 3.2% this year, which is the same as global growth. Not once in the last 40 years have we seen China at the level of global growth. up to 40% due to the growth of China, but this will not happen either this year or next year.

And the CEO of the International Monetary Fund warned on Tuesday that China’s growth expectations could be lowered by “restrictions in the fight against Covid and the difficulties of the real estate sector”, which is facing a series of bankruptcies of developers and difficulties in completing projects.

On Wednesday, the International Monetary Fund saw that China’s Covid strategy could be gradually and safely adjusted to reduce its economic impact.

Source: AFP.

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