Slow economic growth is a challenge for all economies, and the risk of a falling global growth rate is not averted: IMF

Posted on 16th Feb 2023 10:20 am by rohit kumar

In its latest World Economic Outlook report, the International Monetary Fund (IMF) has predicted that global inflation is set to decline this year. The IMF has warned that growth is slowing down, amid a crisis of survival in most economies. Reducing inflation remains a priority for all economies.

 

The IMF has said that amid the cost of living crisis in most economies, keeping prices low remains a priority. Economic activity in Ukraine is being stifled as central banks raise rates to fight war and inflation.

 

It is a matter of relief that the exemption from lockdown in China can help in global growth. Logistical challenges arising from the ongoing war and pandemic in Ukraine and other geopolitical issues have kept prices high, especially in energy commodities and general food items.

 

Why is economic growth falling?

Global economic growth is projected to slow from an estimated 3.4 percent in 2022 to 3.1 percent in 2024 before slowing to 2.9 percent in 2023. The picture has improved slightly since the last predictions. The current estimate for 2023 is 0.2 percentage points higher than predicted in the October 2022 World Economic Outlook. But cannot be happy with this. Growth between 2000 and 2019 remains below 3.8 percent.

 

What will be the growth rate in which country?

The IMF has released separate growth projections for some countries and regions. There was a projected increase of 2.0 percent in the United States in 2022. It is estimated to fall to 1.4 percent in 2023. Meanwhile, China's growth is expected to pick up from 3.0 percent in 2022 to 5.2 percent this year. However, it is expected to come down to 4.5 percent in 2023.

 

What will be the growth rate of India?

The report further states that India's growth rate this year is estimated to decline from 6.8 percent to 6.1 percent. However, it is expected to increase to 6.8 percent in 2024. Russia recorded an estimated negative growth of 2.2 percent in 2022. According to IMF estimates, the euro area had a combined growth of 3.5 percent in 2022. The United Kingdom's growth rate was projected to increase to 4.1 percent in 2022.

 

Will you get freedom from inflation?

According to the IMF, inflation reaches 8.8 percent in 2022. It is expected to fall to 6.6 percent in 2023 and a further decline to 4.3 percent is projected for 2024. Yet inflation forecasts remain higher than pre-pandemic levels. Inflation averaged around 3.5 percent between 2017 and 2019.

 

The reduction in prices in recent days reflects a fall in international fuel and non-fuel commodity prices due to weak global demand. Globally, inflation is expected to decline from 6.9 percent in Q4 2022 (y-o-y) to 4.5 percent by Q4 2023.

 

Which economies are at risk?

The IMF says the balance of risks is tilted to the downside. However, since the last World Economic Outlook in October 2022, the downside risks have eased. The situation of Corona in China is worrying now. The challenges of the Ukraine war are already intact. Tighter global funding costs could make the debt crisis worse, and financial markets could suddenly and unpredictably re-evaluate themselves in response to inflation. Greater geopolitical fragmentation could harm economic progress.

 

Also Read: Vishwa Hindi Sammelan: Languages suppressed during the colonial era are raising their voice on the global stage – S Jaishankar

Other news

SL vs IRE: Record-breaking partnership of Dimuth Karunaratne and Kusal Mendis, Sri Lanka made huge score on the first day

Captain Dimuth Karunaratne (179) and Kusal Mendis (140) scored centuries as Sri Lanka made a huge

Why did R Ashwin silence the panelist as soon as MS Dhoni's name came up? He said- don't talk about him...

Chennai Super Kings are in poor form in IPL 2025. CSK has won only two out of 7 matches so far an

Apart from Sambhal, another old temple was found in this city, DM was shot here… as soon as the news was received, there was panic in the administration!

On Monday, the police and administration swung into action after getting information about a clos

Turkiye Earthquake: Earthquake tremors again in Turkey, a magnitude 5.5 on the Richter scale

Strong earthquake tremors were felt once again in Turkey on Saturday. Let us tell you that an ear

Amidst the controversy over the Asia Cup 2025, Son of Sardaar 2 actor Vindu Dara Singh gave such a reaction to the India-Pakistan tension.

These days, tension between India and Pakistan is once again in the news. After the terrorist att

'I warn you, we will not give even an inch of land', Owaisi said on Waqf Amendment Bill;

AIMIM chief Asaduddin Owaisi said the Muslim community has rejected the bill in its current form.

Bigg Boss 18: After divorcing from their ex-wife, Vivian Dsena found his 'princess', said- my attitude has changed

Vivian Dsena is one of the most loved and popular contestants of 'Bigg Boss 18'. The actor's vide

Earthquake in Delhi NCR: Earthquake tremors in many states of North India including Delhi-NCR, Jammu-Kashmir was the center

Earthquake in Delhi NCR: There was an earthquake in Delhi-NCR on Tuesday afternoon. Although peop

Delhi Rape case: The girl's education was ruined due to the brutality of the officer, and she was planning to commit suicide; That's why kept quiet for 2 years

From November 2020 to January 2021, the accused kept raping the girl by threatening her. Then she

'Diljit Dosanjh is a traitor...' Hania Aamir's entry in Sardaar Ji 3 made people angry, the actor is the target of trolls

Diljit Dosanjh is in the news for his upcoming film Sardar Ji 3, but this time the reason is not