Global growth to remain around 3% over next 5 years: IMF

By Ovunc Kutlu

ISTANBUL (AA) - The International Monetary Fund's (IMF) expects global economic growth to remain around 3% over the next five years, Managing Director Kristalina Georgieva said Thursday.

This is the financial agency's lowest medium-term growth forecast since 1990, and it is well below the average of 3.8% from the past two decades, Georgieva said.

She said that growth rate would also make it harder to reduce poverty and heal the economic damages caused by the coronavirus pandemic.

She noted that global economic growth in 2022 dropped by almost half, from 6.1% to 3.4%, year-on-year, due to Russia’s war on Ukraine and its wide-ranging consequences.

"The slowdown has continued this year. Despite surprisingly resilient labor markets and consumer spending in most advanced economies, and the uplift from China’s reopening," Georgieva added.

The IMF chief said economic activity is slowing in the US and the euro area where central banks' higher interest rates weigh on demand, adding that about 90% of advanced economies are “projected to see a decline in their growth rate this year."