IMF: Slow Global Economic Growth Outlook

The International Monetary Fund (IMF) released its weakest forecast for global growth over the medium term in more than 30 years.

The International Monetary Fund (IMF) predicted that after 5 years, global growth is about 3%, the lowest medium-term forecast in the IMF’s World Economic Outlook Report since 1990.

The global economy is currently not expected to return in the medium term to pre-coronavirus growth rates.

The IMF said weaker growth prospects stem from the progress made by economies such as China and South Korea in raising living standards, as well as slower growth of the global workforce and geopolitical fragmentation, such as Brexit and Russia’s invasion of Ukraine.

In the short term, however, the IMF expects global growth of 2.8% this year and 3% in 2024, slightly below the Fund’s estimates published in January. The new estimates are a 0.1 percentage point cut for this year and next year.

In the same report, the International Monetary Fund (IMF) continued that weak expectations reflected the stringent policy positions needed to reduce inflation, the repercussions of the recent deterioration in the financial situation, the ongoing war in Ukraine and the growing geo-economic fragmentation.

According to the International Monetary Fund, the United States economy is expanding by 1.6% this year and the eurozone is growing by 0.8%. However, the UK is experiencing a 0.3% contraction.