According to the chief of the International Monetary Fund, strong economic activity in the United States and emerging markets is expected to contribute to global growth of about 3% this year. However, this forecast falls below the historic average, raising concerns about lackluster performances in the 2020s.

Kristalina Georgieva, the managing director of the IMF, warned of a potentially disappointing decade ahead if corrective actions are not taken. She highlighted that global economic activity remains weak compared to previous standards, and increasing debt levels present significant challenges to public finances worldwide.

Georgieva also pointed out that the aftermath of the pandemic continues to impact economies, with a global output loss of around $3.3 trillion since 2020. This has disproportionately affected vulnerable countries, further exacerbating economic inequalities.

Despite the modest growth projection of slightly above 3%, which is an improvement from last year, it still falls short of the historic average of 3.8%. The IMF attributes this increase in global growth to strong economic performance in the US and several emerging markets.

The IMF and the World Bank will convene for their spring meetings in Washington next week, where key stakeholders will discuss pressing issues affecting the global economy. Among the concerns are ongoing conflicts such as Russia’s invasion of Ukraine and the war between Hamas and Israel in Gaza, which threaten financial stability worldwide.