On Thursday, The International Monetary Fund (IMF) will next week downgrade its forecast for 2.9 per cent global growth in 2023, Managing Director Kristalina Georgieva said.

“We are experiencing a fundamental shift in the global economy, from a world of relative predictability … to a world with more fragility – greater uncertainty, higher economic volatility, geopolitical confrontations, and more frequent and devastating natural disasters,” she said in a speech at Georgetown University.

Georgieva said the old order, characterized by adherence to global rules, low-interest rates and low inflation, gave way to one in which “any country can be thrown off course more easily and more often.”

She said all of the world’s largest economies – Europe, China and the United States – were slowing down, dampening demand for exports from emerging and developing countries, already hit hard by high food and energy prices.

The IMF would lower its 2023 growth forecast from 2.9 per cent, its fourth downward revision this year, when it releases its World Economic Outlook next week, she said. The global lender would leave its forecast for 3.2 per cent growth in 2022 unchanged, she said, giving no number for the new 2023 forecast.

In 2023, the IMF would lower its forecast of economic growth from 2.9 per cent, its fourth downward revision. The global lender would leave its current forecast for 3.2 per cent growth in the last year remains the same, she said, giving a number of the latest forecast for 2023.

Also, the IMF estimates that countries accounting for about one-third of the world economy will see at least two consecutive quarters of contraction this year or next, Georgieva said. “And, even when growth is positive, it will feel like a recession because of shrinking real incomes and rising prices,” she said.