China’s slowdown prominent as global economy loses $3.7 trillion, notes IMF chief

Amid concerns about the state of the world economy, Kristalina Georgieva, the head of the International Monetary Fund (IMF), painted a picture of weak yet enduring growth. Speaking from Abidjan, Côte d’Ivoire, she emphasized the global economy’s resilience against a backdrop of persistent challenges.

China's slowdown prominent as global economy loses $3.7 trillion, notes IMF chief

“Despite witnessing a strong surge in service demand and significant strides in combating high consumer prices, the world’s economic growth remains tepid,” she shared. This sentiment comes in light of recent data that shows growth figures trailing the pre-pandemic annual average of 3.8%. While in July, the IMF projected a 3% growth rate for both 2023 and 2024, last year’s global economic expansion stood at a mere 3.5%.

Georgieva also noted the disparities in economic recovery across regions. “While countries like the USA and India showcase promising growth trajectories, nations such as China exhibit signs of economic deceleration,” she commented. The broader picture reveals that the global economy has incurred a staggering loss of approximately $3.7 trillion in output since 2020, a consequence of “consecutive shocks” that the world has faced.

Unfortunately, these economic setbacks haven’t been evenly spread. The gravest impacts, Georgieva stressed, have been borne by the world’s most impoverished nations, widening the already expansive wealth gap. Looking forward, all eyes are on the IMF’s upcoming annual meeting in Marrakesh, Morocco, where the institution will unveil its latest economic forecast. As nations grapple with mounting inflation, ensuring its mitigation remains high on the IMF’s agenda, Georgieva affirmed.