Gita Gopinath's message on world economy from Davos: ‘Tough year ahead, but...’

Gita Gopinath: Gita Gopinath said that amid Russia's invasion of Ukraine, rising inflation combined with the impact of the coronavirus pandemic will impact 2023.

Deputy managing director of the International Monetary Fund (IMF), Gita Gopinath said that the world will witness a tough year ahead but there are signs of resilience as she shared a message from Davos where she is attending the World Economic Forum.

Gita Gopinath: Gita Gopinath, first deputy managing director of International Monetary Fund (IMF) is seen. (Bloomberg)

In the video she shared on Twitter, Gita Gopinath said that amid Russia's invasion of Ukraine, rising inflation combined with the impact of the coronavirus pandemic will impact 2023 which is set to be a “tough year”.

"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," Gita Gopinath said.

"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. 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,” she further explained.

The annual meeting of the World Economic Forum is currently underway at Davos and will continue till January 20. It is being attended by notable names from world politics, finance, activism and business.