The world’s economy is expected to grow at a slower pace in the coming years, according to the International Monetary Fund (IMF). This could lead to more inequality, the IMF warned.
In a statement marking the conclusion of the third meeting of the G20 Finance Ministers and Central Bank Governors in Washington DC, IMF Managing Director Kristalina Georgieva said global growth is expected to reach 3.2% in 2024, down from 3.3% in 2025, unchanged from its April forecast.
She attributed the slowdown to a number of factors, including high debt levels, fragmentation, and the challenges of navigating the digital and green transitions.
The IMF chief warned that a low growth world is likely to be an “even more unequal world”. She cited new IMF analysis, which suggests that periods of stagnation lasting four years or more tend to push up income inequality within countries by almost 20%.
“This is a moral and ethical concern,” said Georgieva. “It is also an economic concern—an unequal world is a discontents world that may not be up to the task of adapting to the unstoppable transformations underway.”
She called for a “renewed effort to strengthen the foundation for robust growth and job creation”, arguing that sound fiscal and monetary policies, a stable and inclusive financial system, progressive taxation, and boosting support for vulnerable countries are essential.