Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.
Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.
The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience.
In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026.
“Global growth is steady but underwhelming.
Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke.
He added: “Patterns of trade and capital flows are shifting.
AI (artificial intelligence) is rapidly advancing.
Trade is no longer the engine of global growth it used to be.
Divergences across countries are widening.
And governments worldwide are shifting their policy priorities.”
Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.
He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards.
“It also applies to emerging markets and developing economies trying to close the gap with richer countries.
