World GDP will grow 3% in 2023, estimates IMF

The world economy will face several years with weak growth and in the medium term it is around 3 percent, the lowest expectation since the 1990s, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said on Thursday.

“The slowdown has continued this year and we expect the global economy to grow less than 3 percent in 2023. We project global growth to remain around 3 percent for the next five years, our lowest medium-term forecast since 1990. ″, Georgieva said in the run-up to the spring meetings.

In this sense, Georgieva recalled that world growth fell by almost half from 6.1 percent in 2021 to 3.4 percent in 2022.

For this 2023, the IMF projects that around 90 percent of advanced economies will experience a decrease in their growth rate this year and that given this slowdown, the outlook for low-income economies is complicated.

With geopolitical tensions rising and inflation still high, a robust recovery remains difficult. This hurts everyone's prospects, especially for the most vulnerable people and countries,” added Georgieva.

In addition, she identified three actions to promote growth and have a solid recovery: fight inflation and safeguard financial stability; improve growth prospects in the medium term, and foster solidarity to reduce global disparities.

Regarding the first, she indicated that as long as financial pressures remain limited, they expect central banks to continue the fight against inflation; It will be key to monitor risks in banks and non-bank financial institutions, as well as weaknesses in sectors such as commercial real estate.

To improve growth expectations in the medium term, the IMF urged boosting productivity and growth potential, as well as an 'ecological change'