IMF, World Bank Expect Further Cut in Global Growth

The International Monetary Fund (IMF), the World Bank and others have raised concerns about the deteriorating global outlook, despite their hopes that China's reopening of its economy will help support global growth.

The Managing Director of the IMF Kristalina Georgieva said that the indicators suggest a further reduction in global growth expectations.

Speaking on Friday after a meeting with Chinese Premier Li Keqiang in Anhui Province, Georgieva said China's reassessment of its Covid policies would be good for the local economy and the rest of the world.

The IMF currently expects the global economy to grow by 2.7% next year, compared to 3.2% in 2022.

The meeting came within the framework of the "1 + 6" dialogue that China holds every year with the heads of the IMF, the World Bank, the Organization for Economic Cooperation and Development, the World Trade Organization and other institutions.

World Bank President David Malpass was also pessimistic about the global outlook, saying he was "very concerned" that the world would slide into recession. 

He added that more efforts should be made to lift the world out of stagflation.

Ngozi Ngo-Okonjo-Iweala, Director-General of the World Trade Organization said global trade faces real challenges and trade growth is losing momentum, and it expected global merchandise trade to grow by only 1% in 2023, in a sharp slowdown from an estimated 3.5% expansion this year.

Matthias Cormann, Secretary-General of the Organization for Economic Co-operation and Development said the global economic outlook continues to deteriorate, and he welcomed China's relaxation of some rules in response to COVID.

Georgieva added that talks with China on debt relief for developing countries had been "fruitful" and she foresaw the possibility of moving forward in addressing debt in a more systematic way.