IMF: Global Economy Heads for Weakest Growth Rate Since 1990

Kristalina Georgieva, Director of the International Monetary Fund (IMF), expected global growth of less than 3 percent this year.

She warns that the global economy is heading towards the weakest growth rates since the 1990s and may continue for five years, after the repercussions of the Covid-19 pandemic and the Russian invasion of Ukraine.

Georgieva said in a speech before the start of the spring meetings of the International Fund and the World Bank, that the global economy is heading towards the weakest period of growth since 1990, as the high-interest rates approved by the major central banks in the world led to an increase in borrowing costs for households and companies.

And she expected that this would affect the economy over the next five years.

Before the IMF publishes economic forecasts to be issued next week, Georgieva indicated that the Russian war in Ukraine led to a decrease in global growth in 2022 by half, from 6.1 percent to 3.4 percent.

And she expected the global economy to grow by less than 3 percent.

She warned that 90 percent of advanced economies will experience declines in their growth rate this year, with economic activity in the United States and the Eurozone affected by high-interest rates.