IMF’s Georgieva: Global economy to grow by less than 3% in 2023, down from 3.4% in 2022

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in her prepared remarks on Thursday that they expect the global economy to grow by less than 3% in 2023, down from 3.4% in 2024, per Reuters.

Additional takeaways

"90% of advanced economies will see decline in growth in 2023; India and China to account for half of global growth."

"IMF projects global growth to remain at around 3% over the next five years, lowest medium-term growth forecast since 1990."

"Recent banking sector pressures exposed risk management failures at specific banks and supervisory lapses."

"Robust recovery remains elusive with rising geopolitical tensions and still-high inflation."

"Central banks should continue tight stance to fight inflation, address financial stability risks when they occur."

"Calling for major boost in spending on renewable energy, continued global trade and moves to diversify supply chains."

"Countries should further reduce budget deficits while supporting the most vulnerable to safeguard social cohesion."

"Banks generally stronger and more resilient than in 2008 financial crisis, but there are concerns about hidden vulnerabilities."

"Message to policymakers on monetary policy is to be vigilant and be more agile than ever."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen rising 0.2% on a daily basis at 102.10.