December 2: IMF chief Kristalina Georgieva has warned that the chance of global growth dropping below two percent is increasing as major economies slowdown. Such a trend was last seen during the coronavirus outbreak and the global financial crisis of 2009, AFP reported.
According to AFP, her comments come as the world's biggest economies grapple with fallout from Russia's invasion of Ukraine, which sent food and energy prices soaring, along with a surging inflation and a slowdown in China.
"The probability of growth slowing even further, falling below two percent was one-in-four," said Georgieva at the Reuters NEXT conference Thursday, referring to the fund's recent expectations for 2023.
"When we look at the most recent indicators, we are concerned that this probability may be going a bit further up," AFP quoted her as saying.
According to the news agency, the International Monetary Fund expects more than a third of the global economy to shrink this year or next, with the United States, European Union and China stalling.
It is also concerned about a "simultaneous slowdown in the US, in Europe and in China," said Georgieva, adding that slowing growth in China is particularly significant.
This is worrying given that the world has relied on China for a boost, with "some 35, 40 percent of global growth" coming from expansion in the world's second biggest economy.
The IMF is set to give an update on its economic outlook in January, and it is among key global institutions to visit China next week for talks, added AFP.
According to World Bank figures, the global economy slumped 3.3 percent in 2020 and 1.3 percent in 2009.