Since Corona, most of the economies of the world are facing lack of demand and inflation. At the same time, their debt burden is also increasing. Apart from this, there is an atmosphere of instability in the world. In view of this, International Monetary Fund (IMF) Chief Kristalina Georgieva has warned. He says that the global economy may slow down in the coming days. There is also a risk of the whole world getting trapped in the quagmire of huge debt.
To bring the world economy back on track, it is necessary for China’s economy to be strong. Therefore, Kristalina Georgieva urged China’s leaders to take more decisive steps to bring their country’s slowing economy back on track. Otherwise, there is a risk of the economic growth rate going down further.
it’s time to be worried
IMF Managing Director Georgieva said that this is a time to be worried. She was addressing journalists during the meeting of IMF and World Bank. He said that according to IMF estimates, the global growth rate this year could be 3.2 percent. This is quite less.
He said, global trade remains weak with conflict and increasing global tensions. This tension also includes the poor relations between America and China, the world’s two largest economies. In fact, trade is no longer a powerful engine of growth. We live in a more fragmented global economy.
Countries struggling with Covid debt
Apart from this, many countries are struggling with the loans they had taken to deal with the Covid-19 pandemic. According to IMF, this year the worldwide government debt will reach above 100,000 billion dollars. This will be equal to 93 percent of global economic output. And it can reach 100 percent by 2030.
Warning about the low growth rate of the global economy and the danger of getting stuck in the quagmire of high debt, he said that this only means that along with the income of the people, the number of jobs will also decrease. However, the economic background is not completely disappointing. The world has made great progress in curbing inflation.
He said that high interest rates and other steps taken by the Federal Reserve and other central banks have an important role in controlling inflation. Inflation in developed countries will come down to around two percent next year, which is in line with the target of many central banks.
