The global economy is entering a period of sluggish growth mainly due to geopolitical tensions and subsequent fragmentation her. This assessment was expressed yesterday by the head of the IMF, Kristalina Georgieva, stressing that in the medium term global economy will record the lowest growth rates in more than 30 years. talking to Washington ahead of the spring session IMF And her The World Bank, Ms. Georgieva predicted that the world economy will grow at an average of 3% per year over the next five years. This is lower than previously forecast and represents the most pessimistic forecast since 1990, at least in terms of medium-term growth.

In the three decades since the early 1990s. globalization this led to higher growth rates and helped lift millions out of poverty. However, given the trend towards protectionism and large emerging economies such as China is in better shape today, global growth is expected to be low. As for the Russian invasion of Ukraine and the ongoing war, Ms. Georgieva stressed that “this scourge is not only killing innocent people, but is exacerbating the cost-of-living crisis and bringing more and more hunger around the world.”

He even warned that this war threatened to destroy the “peace dividend” won by the world community over the past three decades. He also predicted that “the road back to sustainable growth will be rocky and difficult, and the bonds that hold us together may be weaker today than just a few years ago.” And, of course, he was quick to point out that anemic growth means that “it will be much more difficult to reduce poverty, heal the wounds opened by the pandemic, and offer new and better opportunities to everyone.”

Over the next few quarters of the year, the IMF joins the OECD and other international organizations in calling on central banks to stay on course by raising interest rates. Ms Georgieva noted that only if inflation there will be a solid basis for improving the medium-term performance of the economy.