(HNMO) - Persistent inflationary pressures and higher interest rates will remain the main issues for the global economy in 2024, along with overarching concerns about long-term growth prospects.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that shocks such as the global Covid-19 pandemic or the Ukraine conflict have created a harsh environment, causing the world to face high inflation, slow growth and unpredictable instability.
One of the biggest concerns at the moment is the long-term growth outlook. In this regard, the IMF forecasts the world economy to grow by only 3% over the next five years. For global Gross Domestic Product (GDP) growth in 2023, the IMF forecasts 2.8%, down from the 3.4% recorded in 2022.
The Ukraine conflict has led to an increase in defense spending, leaving less money for development efforts, growth and assistance to poor countries, said Kristalina Georgieva.
Another concern is that persistent inflation will keep interest rates high for longer. Despite some progress, the world will have to brace for higher interest rates at least this year and into 2024.
According to the IMF chief's warning, inflation and high interest rates will impact investment and consumption, in the context of increasing global poverty and expected difficulties in the next few years.
Source
Comment (0)