International Monetary Fund (IMF) chief Georgieva warned on Thursday that global economic growth is at risk of falling below two percent. The last such situation was during the outbreak of the pandemic coronavirus and the global financial crisis of 2009.

The head of the IMF made this comment as the world’s largest economies have suffered as a result of Russia’s aggression against Ukraine. Due to this war, the price of food and fuel oil has increased worldwide. In addition to this, inflation has increased and China’s economy has slowed down.

Referring to the fund’s latest expectations for 2023, Georgieva said at the Reuters Next conference on Thursday that global economic growth is likely to slow further.

He said, ‘We are very concerned by the latest indicators that this fear may increase a little more.’

The IMF estimates that more than a third of the global economy will shrink this year or next. In this case, the economy of the United States, the European Union and China will face.

Georgieva said the agency is “concerned about the simultaneous slowdown in the United States, Europe and China.” In this regard, the slowdown in China’s economic growth is particularly significant.

The IMF is set to give an update on its economic outlook in January and is due to visit China next week for talks.-AFP

(03 December)