The global economy will continue to grow at the lowest rate since the 1990s in the coming years, and this will hurt the poorest countries in particular. There is a risk of more hunger and poverty, the International Monetary Fund (IMF) warns.
The IMF expects the global economy to grow by less than 3 percent this year, up from 3.4 percent growth in 2022. And in the coming years, economic growth will remain at that level. The IMF had the lowest growth expectations since 1990.
According to IMF Managing Director Kristalina Georgieva, globalization and accompanying economic growth have lifted hundreds of millions of people out of poverty in recent decades.
But partly due to the war in Ukraine and the trade restrictions that followed, the growth of the global economy is now slowing down. That makes poverty reduction and recovery after the corona crisis more difficult.
“That war not only kills innocent civilians, but also increases the cost of living and hunger in vulnerable countries,” says Georgieva.