The global economy is facing a period of unprecedented economic decline. According to the latest forecast from the International Monetary Fund (IMF), the world is set to experience its worst five-year period of economic growth in more than three decades. This dire news has sent shockwaves across the globe, including here in Australia.
The Australian government, led by Treasurer Jim Chalmers, has already taken notice of the new forecast. Chalmers has warned the nation of the potential impact this could have on the upcoming federal budget in May. He has noted the government will be taking into account these international developments as they finalise their budget in the weeks leading up to its release.
In response to a speech given by International Monetary Fund managing director Kristalina Georgieva in Washington DC on Thursday, Dr Chalmers commented on her assessment of the global economy’s prospects.
Ms Georgieva’s warning the IMF’s outlook for global growth over the next five years was the weakest since 1990 was the impetus for Dr Chalmers’ remarks.
Dr Chalmers agreed with Ms Georgieva, that the high inflation and interest rates worldwide, as well as the consequences of the war in Ukraine, were leading to decreased global growth and increased insecurity.
