Kristalina Georgieva, managing director of the fund, noted that in low-income countries, a different trend is observed: the increase in borrowing costs occurs “at a time of weakening demand for their exports”
About 90% of advanced economies are projected to see slower economic growth this year. This was stated on Thursday by the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva at a conference in Washington. This speech precedes the spring session of the governing bodies of the fund and the World Bank.
“Economic activity is slowing in the United States and the eurozone, where higher interest rates are putting pressure on demand. About 90% of advanced economies are predicted to see slower growth this year,” she said.
In low-income countries, the trend is different, Georgieva said, with higher borrowing costs occurring “at a time of weakening demand for their exports.”
“We see that their per capita income growth remains lower than in emerging economies. This is a serious blow, as a result of which it will be more difficult for low-income countries to catch up,” the IMF Managing Director said.
Earlier Georgieva said that the Ukrainian conflict will lead to a drop in global GDP growth below 3% this year, which, in her estimation, will not be easy.