IMF chief hopes to keep global growth forecast stable for 2023

IMF chief hopes to keep global growth forecast stable for 2023

The International Monetary Fund can keep its global growth stable by 2023.

The IMF chief said on Thursday that the global lender is unlikely to lower its growth forecast of 2.7% this year.

Supporting that position is the fact that a feared rise in the price of oil failed to materialize and labor markets remained strong.

IMF Managing Director Kristalina Georgieva was still expecting another “difficult year” for the world economy with stubborn inflation.

DECEMBER INFLATION BREAKDOWN: WHERE ARE CONSUMER PRICES RISING THE FASTER?

Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. (REUTERS/Michele Tantussi/File Photo/Reuters Photos)

The IMF forecast in October that global growth would slow to 2.7% in 2023 after falling from 6.0% in 2021 to 3.2% in 2022.

It had previously forecast growth of 2.9% for 2023, but did not expect any further cuts in the outlook.

“Growth continues to slow in 2023,” he told reporters at the IMF headquarters in Washington. “The most positive part of the picture is in the resilience of labor markets. As long as people are employed, even if prices are high, people spend and that has helped performance.”

DAVOS 2023: THE GREATS RETURN TO THE SWISS MOUNTAINS IN THE MIDDLE OF THE ECONOMIC CRISIS

Georgieva said the IMF expected the slowdown in global growth to “bottom out” and “turn towards the end of ’23 and ’24.”

oil storage facility

The IMF says that the feared increase in the price of oil has not materialized. (REUTERS/Bing Guan/Reuters Photos)

Georgieva said hopes were high for China, which previously contributed 35-40% of global growth, but had “disappointing” results last year.

But that depended on Beijing not changing course and sticking to its plans to reverse its zero-COVID policies, he said.

He said the United States, the world’s largest economy, is likely to experience a soft landing and will suffer only a mild recession if it enters a technical recession.

travelers from china

People wearing protective face masks arrive at the Capital Airport, following an outbreak of the coronavirus disease (COVID-19), in Beijing, China. (REUTERS/Thomas Peter/Reuters Photos)

But Georgieva said great uncertainty remained, citing the risk of a significant weather event, a major cyber attack or the danger of an escalation in Russia’s war in Ukraine.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

He also mentioned global concerns such as growing social unrest in Brazil, Peru and other countries, and the impact of tightening financial conditions remained unclear.

Reuters contributed to this report.

Leave a Comment

Your email address will not be published. Required fields are marked *