India, China may account for half of global growth in 2023: IMF chief

International Monetary Fund (IMF) managing director Kristalina Georgieva warned that the global economy is anticipated to grow at less than 3% in 2023, a dramatic downturn that began last year and would likely continue this year as well. However, she said India and China expected to account for half of this growth.

Team Newsable

First Published Apr 7, 2023, 9:43 AM IST | Last Updated Apr 7, 2023, 9:43 AM IST

The IMF chief on Thursday said that the world economy is expected to grow at less than 3 per cent this year, with China and India estimated to account for 50% of that growth by 2023. The IMF managing director Kristalina Georgieva warned that the severe slowdown in the global economy that occurred last year as a result of the spreading epidemic and Russia's armed invasion of Ukraine would persist this year.

The period of slower economic activity will be prolonged, with the next five years witnessing less than 3 per cent growth, "our lowest medium-term growth forecast since 1990, and well below the average of 3.8% from the past two decades," she added.

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"Emerging economies are a source of some impetus; Asia is a shining example. In 2023, India and China are anticipated to contribute 50% of the world's growth. Others, though, have a more difficult climb," she said.

The tremendous shock of Russia's conflict in Ukraine and its far-reaching effects, Georgieva added, "came after a strong recovery in 2021; global growth in 2022 dropped by almost half, from 6.1 to 3.4 per cent."

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Georgieva said slower growth would be a "severe blow," making it even harder for low-income nations to catch up. The COVID crisis, she said, "initiated a dangerous trend in which poverty and hunger might further rise.

Her remarks came ahead of the IMF and World Bank's spring meetings, which will take place the next week and bring together decision-makers to debate the most crucial challenges affecting the world economy. The annual conference will be held while central banks all around the world hike interest rates to rein in inflation rates that are out of control.

(With PTI inputs)

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