Advanced economies will recover by 2024 according to IMF’s Gita Gopinath

The coronavirus epidemic has had a negative influence on economies all across the world, but they are slowly recovering.

By 2024, advanced economies will be back on track, but developing economies will be 5% behind where they would have been otherwise, according to IMF’s Gita Gopinath.

The coronavirus epidemic has had a negative influence on economies all across the world, but they are slowly recovering.

The war in Ukraine, according to the IMF’s First Deputy Managing Director, has been a serious setback to the global recovery.

“We had a serious downgrade to the global growth rate and the world continues to face headwinds because we have a cost of living crisis. Prices of commodities including fuel and food are going up around the world,” she said.

Ms Gopinath stated that. Central banks are attempting to combat the high level of inflation by hiking interest rates substantially. Which she believes is necessary. But that this will have ramifications for global banking and trade.

During the World Economic Forum Annual Meeting 2022, she spoke in a special session titled “What Next for Global Growth?”

Ms. Gopinath stated that recovery rates vary greatly around the world.

“While advanced economies, as per our estimates, will basically get back to where they would have been in absence of pandemic in 2024, but emerging and developing economies would be 5 per cent below where they would have been in the absence of the pandemic,” she said.

The panelists agreed that recovery from the COVID-19 crisis has been inconsistent within. And between nations, depending on fiscal resources and vaccine availability.

They explored how a larger set of growth foundations might secure long-term economic prosperity. And a return to international convergence as food, fuel, and resource crises threaten to undermine an equitable recovery.

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