According to the IMF, China will be the main engine of global economic growth during the following five years.
The US will contribute 11.3% of the global growth, while China will provide 22.6%.
In China, the US, India, and Indonesia, there will be a concentration of half of the world’s growth.
The International Monetary Fund predicts that during the next five years, China will overtake the US as the main force behind global growth, contributing twice as much.
According to the IMF’s World Economic Outlook, which was published last week, China will account for 22.6% of the global GNP growth, followed by India with 12.9% and the US with 11.3%.
They are followed by Japan, Indonesia, Germany, Turkey, and the United States, all of which contributed less than 3.6%.
Twenty countries will account for seventy percent of global growth, with China, India, the US, and Indonesia accounting for more than half of that.
Brazil, Russia, India, and China should contribute more to global growth than the other Group of Seven countries, according to the IMF.
In general, the IMF forecasts that in a world with higher interest rates, global growth will increase by around 3% over the next five years. The forecast is the lowest in more than 30 years.
The group’s study made clear that recent bank upheaval and persistent inflation have increased the probability of a recession. March saw problems with Silvergate, Credit Suisse, and other brands in addition to Silicon Valley Bank and Signature going under.
“Risks to the outlook are squarely to the downside,” the IMF stated. “As the world economy responds to the shocks of 2020–22 and the recent financial sector upheaval, there is a lot of uncertainty around the short- and medium-term prognosis. Concerns about the recession have become more prominent, while concerns about persistently rising inflation still exist.
