The International Monetary Fund has forecast the weakest global economic growth in more than three decades. The IMF says that the world economy will grow by about 3% in five years.
This is reported by Bloomberg.
According to managing director Kristalina Georgieva, this is the lowest medium-term growth forecast since 1990 and the smallest five-year average of 3.8% over the past two decades.
The IMF predicts that almost 90% of advanced economies will face slower growth this year as tighter monetary policy weighs on demand and slows economic activity in the US and the Eurozone.
"With rising geopolitical tensions, with inflation still running high, a robust recovery remains elusive," Georgieva said.
She emphasizes that under such conditions, central banks should continue to raise interest rates until the pressure on financial stability is reduced to a minimum.
According to the Financial Times, Georgieva warned that the world economy is experiencing years of slow growth, and the medium-term outlook is the weakest in more than 30 years.