The International Monetary Fund (IMF) believes that a cost of living crisis that was triggered in many countries following global inflation spike is subsiding, Managing Director Kristalina Georgieva said.
“We see inflation finally trimming down in quite a number of countries. The chance of finally getting on top of the problem of cost of living being a major disrupter for millions and millions of people, we see light at the end of this tunnel,” Kristalina Georgieva said as many countries in the world continue to face inflation and increased food and energy costs.
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Last month, IMF estimated that world consumer-price increases would slow to 6.6% this year. This would be 0.1 percentage point higher than the October projection, following 8.8% in 2022. IMF also forecast slowing to 4.3% in 2024 and inflation rates to be lower in about 84% of countries in 2023 than in 2022. World gross domestic product will likely grow an estimated 2.9% in 2023, 0.2 percentage point more than forecast in October, IMF had said.
Although, IMF raised its global economic growth outlook for the first time in a year, premised on US spending and China’s reopening after Covid.
Kristalina Georgieva reiterated the Fund’s outlook, saying that even though global growth is falling, while global growth is at a low point, the IMF continues to be worried owing to the Covid pandemic, Russia’s invasion of Ukraine and the deadly earthquake that hit parts of Turkey and Syria.
“The world economy is still in a very difficult place. Global growth is slowing down in 2023 but it might be a turning point,” the IMF chief said.
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