The head of the International Monetary Fund stated on Thursday that strong economic activity in the US and emerging markets is expected to contribute to this year's global growth of roughly 3%, which is below the annual historical average and a warning sign about possible underwhelming performances through the 2020s.
In revealing the economic estimate and longer-term prediction, the organization's executive director, Kristalina Georgieva, stated, "Without a course correction, we are indeed heading for the 'Tepid Twenties,' a sluggish and disappointing decade."
She said that historical indicators of global economic activity are poor, and that rising debt is causing serious problems for state budgets throughout most of the world.
"The pandemic's wounds still affect us now. The most disadvantaged nations bear a disproportionate share of the costs associated with the $3.3 trillion global production loss since 2020, according to her.
The projected growth rate for this year is little higher than last year's, at slightly over 3%. 3.8% is the historical average. According to Georgieva, "strong activity in the US and many emerging market economies is the reason for the slight increase in global growth."
The most important challenges facing the world economy will be discussed at the IMF and World Bank's spring meetings, which will be held in Washington next week. Finance ministers, central bankers, and policymakers will be in attendance.
The yearly event will take place while a number of crises, such as Israel's battle with Hamas in Gaza and Russia's invasion of Ukraine, jeopardize the stability of the world economy.
