Washington, April 7 : The IMF managing director said last year’s sharp global economic slowdown will continue through 2023 and risks will persist over the next five years. Global growth will remain at around 3% for the next five years, she said, the weakest medium-term growth forecast since 1990, according to the Guardian.

“This makes it even more difficult to reduce poverty, heal the economic scars of the COVID-19 crisis and provide new and better opportunities for all,” Georgieva said, adding that economic activity is slowing, in especially in advanced economies. While developing countries, including China and India, saw some momentum, low-income countries also suffered from rising borrowing costs and lower demand for their exports. Up to 90% of advanced economies will see slower growth this year, the IMF chief said, as activity in the United States and the euro zone has been hit by rising interest rates.

The turmoil in the global banking sector over the past month has shown that central banks still have to navigate the dangers, Georgieva said. However, she urged policymakers to continue using higher interest rates to fight inflation, while providing separate support to struggling banks.