THE IMF (IMF) conceded that the global economy should “bottom out” this year and only pick up again in 2024. The statement came from Kristalina Georgieva, managing director of the fund.
In a press conference, the head of the IMF said it will be a challenging year, especially as banks face tough decisions about raising interest rates to curb rising inflation. She expects that “the slowing path of global growth will be reversed in the second half, so that in 2024 we will have greater growth than this year.”
Last week she claimed that a Third of the world economy will fall into recession this year, but said that a global crisis can be avoided. In October, the fund forecast global growth of 2.7% this year, versus a growth forecast of 3.2% for 2022.
Georgieva said China is the “main engine of global growth” this year. “If they maintain their current pace, China will make a positive contribution to average global growth by midyear,” he said. She also believes the US can still avoid falling into recession, largely because of the resilience of the job market, which she described as “remarkable”.