IMF Projects Slow Global Economic Growth And High Debt

IMF (Photo: Antara)

JAKARTA - The International Monetary Fund (IMF) estimates that the global economy will experience low growth and high debt.

IMF IMF Managing Director Kristalinawas said the global economy is expected to grow by 3.2 percent per year and slow down to 3.1 percent per year in 5 years.

"This is the lowest mid-term prospect in decades. And trade is no longer a powerful growth engine. We live in a more fragmented global economy," he said on his official website, Friday, October 25.

Crystal said that this year's public debt will exceed 100 trillion US dollars, or the equivalent of 93 percent of Gross Domestic Product (GDP) and will be the highest of all time. Or by 2030 it is estimated that this figure will approach 100 percent of GDP.

"So this is the point. The global economy is threatened with being trapped in a low growth path and high debt," he said.

Crystal said this indicated that state revenue would be lower and less employment opportunities.

"It also means lower government income, so there is less investment to support families and fight long-term challenges such as climate change," he said.

According to him this is a worrying period by considering these issues, his party is issuing the latest global policy agenda.