The global economy is facing its worst prospects in 30 years, the IMF warns

The global economy faces its bleakest outlook in more than 30 years as geopolitical tensions and sky-high inflation take their toll, the head of the International Monetary Fund said.

Speaking ahead of the fund’s spring meeting next week, Kristalina Georgieva said global production would grow by an average of just 3 percent a year over the next five years — the weakest forecast since 1990 and well below the 3.8 percent average annual growth rate in the last two decades.

“Given the increasing geopolitical tensions and still high inflation, a robust recovery remains hopeless,” said Georgieva. “This is hurting the prospects of everyone, especially the most vulnerable people and countries.”

“Given the increasing geopolitical tensions and still high inflation, a robust recovery remains hopeless,” said the head of the International Monetary Fund, Kristalina Georgieva

She said that over the past three years, the global economy has “climbed one big hill after another, only to find that there were many more to come.”

“First was Covid, then Russia’s invasion of Ukraine, inflation and a cost of living crisis that hit everyone,” she added.

“But the road ahead, and particularly the road back to robust growth, is bumpy and foggy, and the ropes holding us together may now be weaker than they were.”

Bank failures in Switzerland and the US have exposed weaknesses that have increased downside risks to the global economy, she said.

The fund forecasts that 90 percent of advanced economies will experience slow growth this year.

On the war in Ukraine, Georgieva said: “There is a risk that the peace dividends we have enjoyed over the past three decades will be wiped out, also contributing to trade and financial frictions.”