The International Monetary Fund is projecting global economic growth to be 3 percent five years from now, the lowest medium-term growth projection since 1990, CNBC reported April 11.
In the shorter term, the IMF is projecting 2.8 percent growth this year and 3 percent growth in 2024. The pessimistic growth projection is attributed to the tighter monetary policy needed to combat inflation and continued geopolitical turmoil.
The U.S. economy is expected to grow by 1.6 percent this year.
"The major forces that affected the world in 2022 — central banks' tight monetary stances to allay inflation, limited fiscal buffers to absorb shocks amid historically high debt levels, commodity price spikes and geoeconomic fragmentation with Russia's war in Ukraine, and China's economic reopening — seem likely to continue into 2023. But these forces are now overlaid by and interacting with new financial stability concerns," the IMF report said.