World finance officials who meet in Washington this week confront a bleak picture: Eight years after the financial crisis erupted, the global economy remains fragile and at risk of another recession, however The IMF foresees Georgia’s economy to grow by 2.5% in 2016.
“Growth has been too slow for too long,” Maurice Obstfeld, chief economist of the International Monetary Fund, warned on the eve of the spring meetings of the IMF, the World Bank and the Group of 20 major economies Thursday through Saturday.
The IMF on Tuesday downgraded its outlook for growth for most regions and for the global economy as a whole. It now foresees a weaker financial landscape than it did in January. Like the World Bank and the Organization for Economic Cooperation and Development, the IMF has repeatedly overestimated the strength of the world economy in the aftermath of the 2008 financial crisis.
The economic growth forecast indicator for 2017 was also lowered to 4.5% from 5%. Meanwhile, the Georgian Authorities forecasts 3-3.5% upturn in 2016 and 5.5-6% growth in 2017.
Under the IMF assessments, the economy of Ukraine will rise by 1.5% in 2016 and by 2.5% in 2017.
The economic growth forecast for Armenia makes up 1.9% in 2016 and 2.5% in 2017. At the same time, the Azerbaijani economy is expected to shrink by 3% in 2016 and by 1% in 2017. Russia is expected to record 1.8% contraction in 2016 and 0.8% upturn in 2017.
“There is no longer much room for error,” he said.
The IMF foresees global growth of 3.2 percent this year, down from the 3.4 percent it predicted in January. Still, even the scaled-back forecast would mark an improvement over last year’s 3.1 percent growth, the slowest pace since the recession year of 2009.
The agency cut its forecast for 2016 economic growth in the United States to 2.4 percent from 2.6 percent; Japan to 0.5 percent from 1 percent; and the 19-country eurozone to 1.5 percent from 1.7 percent.
The IMF did raise its growth forecast for China to 6.5 percent from the 6.3 percent it predicted in January. It cited resilient consumer demand and fast growth in Chinese services industries.