IMF has gloomy outlook for world economy: ‘Without a course correction, we are indeed heading for ‘the Tepid Twenties”

Strong economic activity in the United States and emerging markets should help boost global growth by about 3% this year, the head of the International Monetary Fund said Thursday, below the historical annual average and a sign ahead -runner for possible poor performance during the 2020s.

“Without a change in course, we are effectively heading into the ‘tepid twenties,’ a slow and disappointing decade,” Kristalina Georgieva, the organization’s executive director, said in announcing the economic projections and long-term outlook.

She said global economic activity was weak by past measures and debt was rising, posing major challenges to public finances in many parts of the world.

“The scars of the pandemic are still present. The global output loss since 2020 amounts to approximately $3.3 trillion, with the costs falling disproportionately on the most vulnerable countries,” she said.

The expected growth rate of just over 3% is slightly higher than last year’s forecast. The historical average is 3.8%.

“Global growth is slightly stronger due to strong activity in the United States and many emerging economies,” Georgieva said.

The IMF and World Bank will hold their spring meetings next week in Washington, where finance ministers, central bankers and policymakers will discuss the world economy’s most pressing issues.

The annual gathering will take place as several conflicts threaten global financial stability, including Russia’s invasion of Ukraine and the war between Hamas and Israel in Gaza.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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