For the last several years, there have been lots of events that hammered the global economy. When things start looking up, a new change occurs. This is why the global economy is still unable to recover. Analysts are rather pessimistic about its prospects. Almost every forecast begins with words that the economy is facing hard times.
This time, Managing Director of the International Monetary Fund Kristalina Georgieva has joined the ranks of those who expect worse to come. "We expect 2023 to be another difficult year, with global growth falling under 3 percent as the effects of the war in Ukraine and monetary tightening continue to take hold," she said.
"A rapid transition from a prolonged period of low interest rates to much higher rates-necessary to fight inflation-has inevitably caused turbulence in the banking sector in some advanced economies and made policy choices even harder." These factors will continue to influence the pace of global GDP growth.
"Despite surprisingly resilient labor markets and strong consumer demand, despite the uplift in China, we expect the world economy to grow less than 3% this year," Kristalina Georgieva noted.
Earlier she warned about high risks for financial stability in the world due to geo-economic fragmentation.
