International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva said that “the global economy is estimated to grow less than 3 percent in 2023, with India and China expected to account for half of the global growth this year.

Key takeaways

“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.”

“Despite surprisingly resilient labor 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 percent in 2023.”

“Economic activity is slowing in the US and the Eurozone because of the current higher interest rates regime, thereby weighing on the demand.”

“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.”