IMF assessment of “weak growth and persistent inflation”
The director of the International Monetary Fund (IMF), Georgieva, made assessments of the global economy at the event held as part of the Spring Meetings of the IMF and the World Bank.
Noting that inflation remains stubbornly high, Georgieva noted that geoeconomic divergence affects trade and capital flows and increases downside risks.
“The global economy has proven quite resilient to multiple shocks over the past three years, but it has yet to overcome weak growth and persistent inflation,” Georgieva said. saying.
“FIGHTING INFLATION AND MAINTAINING FINANCIAL STABILITY HAS BECOME MORE COMPLEX”
Georgieva stated that the fight against inflation and the preservation of financial stability have become more complex with the pressures on the banking sector recently.
Noting that low-income countries are particularly vulnerable due to high debt, Georgieva said that as per capita income growth slows, it becomes more difficult for these countries to catch up with others.
In this environment, Georgieva stated that the global political agenda must focus on restoring prospects for sustainable and inclusive growth in both the short and medium term.
“RESTORING PRICE STABILITY IS A PRECONDITIONAL RETURN TO STRONG GROWTH”
Emphasizing the importance of restoring price stability and maintaining financial stability as a prerequisite for returning to strong growth, Georgieva emphasized that central banks need to address financial stability risks by working closely with regulators and supervisors.
Stating that hidden risks need to be monitored in banks and non-bank financial institutions or in sectors such as commercial real estate, Georgieva said: “It is essential to be prudent.” she used the phrase.
Stating that steps must be taken to advance structural transformations and counter segregation to maintain prosperity, Georgieva stated that international cooperation must also be accelerated to reduce the damage caused by segregation.
“THE MOST WORRYING LONG-TERM WEAK GROWTH FORECAST”
Referring to the global economic outlook, Georgieva said: “We were afraid of the recession. At this point, we anticipate walking a narrow path that avoids a crash landing.” saying.
Stating that the global economic growth forecast of 2.8 percent for this year is not enough to provide opportunities for businesses and people around the world, Georgieva said: “What is most worrying is the weak long-term growth outlook “. she performed her assessment.
Noting that the world economy is not in a “great place,” Georgieva noted that they see risks rising. (AA)