The head of the IMF urged to recognize the unfair distribution of benefits between countries

The globalization of the world economy leads to an unfair distribution of benefits between countries. Such a statement did Head of the International Monetary Fund (IMF) Kristalina Georgieva at the Boao Asian Forum.

“We have to recognize that the benefits of globalization are not shared fairly between countries and people,” she said.

Georgieva called for a “revitalization of international trade on an equitable basis” and diversification of supply chains based “only on economic logic.”

The head of the IMF noted that the global economy “is going through shock after shock.” The IMF expects 2023 to be “another difficult year,” she added. According to the fund, the fall in global GDP will be 3% due to the conflict in Ukraine and the tightening of monetary policy.

In addition, Georgieva pointed to the increase in interest rates by countries to fight inflation, which caused concern in the banking sector in some states. The head of the IMF called on the world community for “cooperation and solidarity” to cope with “the challenges ahead.”

In December 2022, Bank of Russia Governor Elvira Nabiullina notedthat the Central Bank still sees “risks of a more significant cooling of the global economy” than it is in the baseline scenario. According to the Central Bank, in 2023 the dynamics of the country’s GDP will be in the range from minus 1% to plus 1%. At the same time, the Ministry of Economic Development believes that by the end of 2023, Russia’s GDP will decrease by 0.8%, in 2024 it is expected that the growth of the Russian economy will be 2.6%.

At the end of March, the World Bank introduced a report that states that by 2030 the global economic growth rate will decline to the lowest levels in 30 years. The organization said the economy is facing a “lost decade”. They expect that the average potential GDP growth will fall by about a third compared to the pace that prevailed in the first decade of this century, to 2.2% per year.