The world economy is heading for its weakest medium-term growth in more than 30 years, the International Monetary Fund (IMF) warned last week in its latest World Economic Outlook report.
The IMF expects global growth to be around 3% in 2028, the lowest medium-term forecast in an IMF World Economic Outlook report since 1990.
According to the report, global economic growth has slowed in recent years due to rising interest rates and the conflict between Russia and Ukraine. Meanwhile, high inflation and banking tensions in the United States and Europe add uncertainty to an already complex economy.
The IMF said that “with the recent increase in volatility in financial markets, the fog around the global economic outlook has thickened.”
“Uncertainty is high and the balance of risks has shifted firmly to the downside as long as the financial sector remains unstable,” the IMF added.
Tobias Adrian, financial adviser and director of the IMF’s Monetary and Capital Markets Department, said the big emerging market economies, including China, had remained resilient.
China’s GDP will grow around 5%, the real estate market heats up
“So when you look at total flows to the emerging market, China is by far the largest recipient of global capital, and that’s good for the Chinese economy,” Adrian added.
The IMF said that “with the recent increase in volatility in financial markets, the fog around the global economic outlook has thickened.”
Despite a slowdown in global growth in 2023, the IMF is positive about China’s growth prospects.
Thomas Helbling, deputy director of the IMF’s Asia and Pacific Department, said the IMF expects the Chinese economy to see a strong rebound in growth in 2023, with the government’s growth target of around 5% approaching. to the IMF forecasts.
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