IMF governor warns of possibility of global economic growth ‘below 2% next year’

International Monetary Fund (IMF) president Kristalina Georgieva has warned that global economic growth is expected to fall below 2% next year.

Governor Georgieva made this statement yesterday (1st) at an event hosted by Reuters, emphasizing the continued impact of the war in Ukraine and the slowdown in Europe, China and the United States.

In particular, he expressed concern about the economic slowdown in China, which has been a powerful engine of global economic growth.

“We are concerned that this possibility could go a little higher,” Georgieva said.

Earlier in October, the IMF lowered its forecast for global economic growth next year to 2.7% from 2.9% it previously expected in July, citing the war in Ukraine, high energy and groceries, rising inflation and high interest rates.

Meanwhile, World Bank President David Malpass said at the same event that the world’s poorest countries had a total debt of $62 billion last year, up 35% from a year earlier.

Malpass said two-thirds of this debt is owed to China.

VOA news

*This article was taken from Reuters.