Digital Transformation Slows Down the Global Economy
IMF Reports Says Weakest Growth of World Economy Since 1990
By Garvit Vyas , 08 May, 2023
The world economy is supposed to grow at roughly 3 percent in the next five years. It is the slower pace since 1990 as told by the head of the International Monetary Fund.
According to the reports, the global growth has fallen almost in half to 3.4 percent in 2021. It is the below 3.8 percent average growth in the last two decades. The slowdown is continuing in 2023 as well, despite strong job markets in the countries like United States.
As per the information by IMF, the expected growth dip below 3 percent in 2023, with China and India accounting for more than a half of the growth. Around 90 percent of the advanced economies are supposed to see decline in growth by reflecting the borrowing costs, after the central banks raised the interest rates to stabilise soaring prices. Also, for the low-income countries the higher borrowing costs also arrive at a time of weakening demand for their exports.
Georgieva added, a severe blow is even harder for the low-income nations to catch up. Also, hunger and poverty may increase further in a dangerous trend that started by the global covid crisis. Thus, to call for support to vulnerable nations, the authorities must continue to lift up the interest rates to fight the inflation as long as financial pressures are limited.China and India Contributing World GDP
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Garvit Vyas
Analyst
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