BEIJING, March 26 – RIA Novosti. Spring has not yet started in the global economy, risks to financial stability have increased significantly, stated Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), speaks at the China Development Forum in Beijing on Sunday.

“Global economic growth is expected to fall below 3% this year. Preliminary estimates suggest that indicators may improve in 2024, but even then they will remain below the historical average of 3.8%,” Caixin Financial Publication said.

According to him, the slowdown in economic growth is due to the slowdown in economic activity due to the long-term traumatic consequences of the epidemic, the Russia-Ukraine conflict and the tightening of monetary policy.

Georgieva also expressed her concerns about the “major uncertainty” facing the global economy. According to him, geo-economic fragmentation could divide the world into rival economic blocs, causing everyone in the world to become poorer and less sheltered.

The IMF director also noted that “the risks to financial stability have increased significantly”.

“Higher interest rates were needed to combat inflation, but in a highly indebted environment, a rapid transition from long-existing low interest rates to much higher rates will inevitably bring pressure and vulnerability.”

Earlier, Zhu Ming, deputy director of the China Center for International Economic Exchanges, said that the bankruptcy of the Bank of California Silicon Valley was also due to the world experiencing the fastest rate hike in history by 500 basis points. Scores in the last 12 months.