The world economy will grow only 2.8% at the end of the decade, the IMF projects

Medium-term global growth prospects have been systematically revised downwards since the 2008-2009 global financial crisis.

The IMF noted in Chapter 3 of its World Economic Outlook report that the downward trend in global growth began in the early 2000s in advanced economies and after the crisis in emerging market economies. and in development.

He explained that demographic pressures and the slowdown in private capital formation further precipitated the growth slowdown.

“To drive growth, urgent reforms are needed to improve the allocation of resources to productive businesses, boost workforce participation, and harness artificial intelligence to increase productivity.”

The global lender noted that the persistent low growth scenario, combined with high interest rates, could also restrict governments' ability to counter economic slowdowns and invest in social welfare or environmental initiatives.

A year ago, the IMF said it expected medium-term growth to be around 3%. The new forecasts reflect downward revisions to medium-term growth across all income groups and regions, particularly emerging market economies.

With information from Reuters