By Alexander Lee 
 

Kristalina Georgieva, Director of the International Monetary Fund (IMF), leaves after a press conference at the Washington Meridian Center on the 6th. AFP United News 
 
 

The International Monetary Fund (IMF) has warned that global economic growth over the next five years will be the weakest in 30 years. Kristalina Georgieva, Director of the International Monetary Fund (IMF), predicted during a lecture at the Washington Meridian International Center on the 6th that the world economy will grow by about 3% over the next five years, according to reports from Bloomberg and others. She added, "This is the lowest mid-term forecast since the 1990s, and it falls far short of the average growth rate of 3.8% over the past 20 years."
Director Georgieva predicted that global GDP will grow by less than 3% this year, which is consistent with the IMF's forecast of 2.9% announced last January. The world economy grew by 3.4% last year. She expressed concern that the lower growth would be a "fatal blow," with low-income countries being particularly affected. "Poverty and hunger may increase, and this is a dangerous trend that started with the COVID-19 crisis," she said. The IMF has diagnosed that about 15% of low-income countries are already in a debt crisis, and 45% are exposed to vulnerability due to high debt. Director Georgieva also said that some emerging markets are strong, with India and China in Asia expected to account for half of the world's economic growth.
Director Georgieva expressed concern that high interest rates, a series of bank bankruptcies in the United States and Europe, and deepening geopolitical divisions are threatening global financial stability. "The path ahead, especially the path back to strong growth, is rough, foggy, and the ties that have bound us together may be weaker than they were a few years ago," she said. On this day, Director Georgieva reiterated her warning that global GDP could be reduced by up to 7% due to long-term trade disruptions such as restrictions on migration, capital movement, and international cooperation. This is equivalent to about 7 trillion dollars, roughly the annual production of Germany and Japan. She also warned that the disruption of technological trade could lead to a 12% reduction in GDP for some countries, pointing out the loss that could result from the United States' moves to reorganize supply chains targeting China. The International Monetary Fund and the World Bank will hold their regular spring meetings in Washington next week, where finance ministers and central bank governors from various countries will discuss the challenges facing the world economy.
 
Reporter Alexander Lee alexanderlee_24@newsyn.co.kr