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International Monetary Fund (IMF) chief Kristalina Georgieva has said that the global economy is estimated to grow less than 3 per cent in 2023, with India and China expected to account for half of global growth during the year. Georgieva stated global growth is expected to remain around 3 per cent over the next five years -- its lowest medium-term growth forecast since 1990, and well below the average of 3.8 per cent from the past two decades.

She said Asia is in a bright spot. She mentioned ‘Some momentum comes from emerging economies -- Asia especially is a bright spot. India and China are expected to account for half of the global growth in 2023’. Moreover, she said ‘Despite surprisingly resilient labour markets and consumer spending in most advanced economies, and the uplift from China's reopening, we expect the world economy to grow less than 3 per cent in 2023.’

Further, she said economic activity is slowing in the US and the Eurozone because of the current higher interest rates regime, thereby weighing on the demand. She stated about 90 per cent of advanced economies are projected to see a decline in their growth rate this year. She also said ‘For low-income countries, higher borrowing costs come at a time of weakening demand for their exports. And we see their per-capita income growth staying below that of emerging economies. That is a severe blow, making it even harder for low-income nations to catch up.’