Gita Gopinath Describes IMF's Global Outlook For 2023, Says "Tough Year Ahead, But..."

The Deputy Managing Director of the International Monetary Fund (IMF), Gita Gopinath, is currently in Davos for the annual meeting of the World Economic Forum. On Tuesday, she shared a video message on Twitter in which she described IMF's outlook for 2023 in one line. "We have a tough year ahead, but there are signs of resilience," she said. 

In the clip, Ms Gopinath explained rising inflation and fallout from the ongoing Russia-Ukraine war, combined with the lingering effects of the pandemic, would make 2023 a tough year. However, she also added that a strong labour market in several countries and consumption holding up in several parts of the world indicated resilience. 

"We are in Davos and if I were to describe IMF's outlook for 2023 in one line, it would be that we have a tough year ahead but there are signs of resilience," Ms Gopinath said. 

She further explained, "A tough year, because we have high levels of inflation around the world, even though it's been coming down the last few months. Tough year because we still have the war and its spill-overs to the rest of the world." 

"There are signs of resilience with strong labour market in several countries, including US and Europe," Ms Gopinath continued, adding, "We're seeing consumption holding up in several parts of the world. We expect global growth to bottom out this year, but improve towards the second half of this year and into 2024."

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The annual meeting of the World Economic Forum will continue till January 20. It is attended by notable names from world politics, finance, activism and business. Four Union ministers - Mansukh Mandaviya, Ashwini Vaishnaw, Smriti Irani and RK Singh - as also Maharashtra Chief Minister Eknath Shinde, along with a number of officials and business leaders are representing India. 

The theme of the 53rd Annual Meeting is 'Cooperation in a Fragmented World'. The event focuses on solutions and public-private cooperation to tackle the world's most pressing challenges.