The world’s economic prospects are dimmer than at any point in recent decades, IMF Managing Director Kristalina Georgieva warned at the G20 summit in Brazil. The IMF has projected a modest 3.3 per cent global growth rate for 2025, reflecting ongoing challenges that threaten to undermine economic stability and exacerbate inequality. With growth forecasts languishing well below pre-pandemic averages, the IMF chief cautioned that the world is grappling with an unprecedented economic slowdown that could worsen income disparity. This growing inequality could reverse decades of progress and ignite discontent towards economic integration and technological advancements, which have previously driven growth and development. Georgieva suggested that a gradual, people-focused fiscal approach could mitigate fiscal risks while supporting growth and reducing inequality.

Source: Daily Nation July 27, 2024 17:12 UTC