The head of the International Monetary Fund, Kristalina Georgieva, has stated that India and China can play a crucial role in global development this year. Although the global economy is projected to grow by less than 3%, certain emerging economies such as India are growing at a rapid pace and can contribute significantly to development in Asia and worldwide.
Georgieva also acknowledged that other countries could experience growth, but noted that the current international economic boom is threatened by the resurgence of the coronavirus and the prolonged Russia-Ukraine conflict. Already, the international economy has declined from 6.1% to 3.4%, with low-income countries affected the most. Poverty and hunger are expected to rise, and this trend will likely continue.
Furthermore, Georgieva highlighted the changes in the global banking system and expressed concerns about issues in other sectors. Despite these concerns, the fact that the Indian and Chinese economies are potentially on a growth path is viewed as positive for the Indian market in particular. Economic slowdowns in low-income countries are predicted to lead to a shift in demand, with advanced economies expected to see a 90% growth rate slowdown by 2023.
The head of the International Monetary Fund, Kristalina Georgieva, has said that countries like India and China can play an important role in international development in the current year.
The global economy is expected to grow by less than 3 percent this year.
Some of the countries from emerging economies are growing very fast. India plays a very important role especially in Asian countries.
So India and China can play an important role in the world development in the current year. Georgieva said other countries may also face the boom.
Currently, in the context of the growing economy at the international level, now the corona virus has started to increase again. Meanwhile, the Russia-Ukraine conflict has been going on for over a year. Already the international economy has seen a decline to 3.4 percent, down from 6.1 percent.
Low-income countries in particular have seen further declines. As a result, poverty and hunger are expected to increase. A more alarming trend overall is expected to continue.
Low-income countries, and economic slowdowns, are expected to see an adjustment in demand. 90% of the growth rate by 2023 is expected to slow down in advanced economies.
Talking about the banking crisis, Georgieva said that the global banking system has seen many changes since the 2008 crisis. He pointed out that there are similar concerns not only in banks but also in other sectors. While the overall global economy is on the mend, the fact that the Indian and Chinese economies may be on the growth path is seen as positive for the Indian market.