Inflation: The world’s largest economies are grappling with the consequences of Russia’s invasion of Ukraine, which has fueled rising food and energy prices and a recession in China.
IMF warns Asian countries: The pressure of inflation continuously increases in Asia. Regarding this, the head of the International Monetary Fund (IMF), Kristalina Georgieva, warned on Thursday that the pressure of inflation is increasing in Asia. Due to this, the global growth rate is likely to fall below 2%. The last time similar pressure was felt was during the COVID-19 pandemic. Moreover, the global financial crisis of 2009 (Global Financial Crisis) was observed during the Inflationary pressure increasing in Asian countries due to the slowing down of significant economies given by the International Monetary Fund (IMF).
Kristalina Georgieva spoke as the world’s largest economies grapple with the consequences of Russia’s invasion of Ukraine, which has led to rising food and energy prices, rising inflation, and a recession in China. As a result, growth prospects are slowing even further, Georgieva said at a Reuters Next conference on Thursday, referring to the Fund’s most recent expectations for 2023, which had a one in four chance of falling below 2%.
Global growth rate likely to fall
He said that when we look at the most recent indicators, we are concerned that the potential for global growth to fall may increase slightly. The International Monetary Fund expects the global economy to shrink by more than a third this year or next, with the U.S., European Union, and China coming to a standstill.
Georgieva says that the U.S. The U.S. is also concerned about a “simultaneous slowdown” in Europe and China, adding that slow growth in China is particularly significant. It is worrying that the world has relied on China to drive “about 35%, 40% of global growth” coming from expansion in the second-largest economy.
The decline in the global economy
The IMF is set to give an update on its economic outlook in January, and it is among the major global institutions to visit China next week for talks. According to World Bank data, the global economy declined by 3.3% in 2020 and 1.3% in 2009.
