IMF: We face a deepening division in the global economy

The president of the International Monetary Fund (IMF), Kristalina Georgieva, made statements after the war in Gaza.

Georgieva stated that the war is a new factor worsening the prospects for the world economy, but it is too early to make a clear assessment: “The IMF is closely monitoring the economic effects of the war in Gaza. The global economy is experiencing severe shocks that have now become “normal.” “We face a deepening divide in the global economy,” she said.

‘COULD HIT BANKS AND NON-BANKING INSTITUTIONS’

Highlights of Georgieva’s speech are as follows:

*Inflation has fallen, but is still above target levels in many countries, so interest rates will need to stay high for longer.

*Further tightening of financial conditions could affect banks and non-banking institutions.

*We need to increase growth in the medium term; The growth we need to recover from the effects of various crises is not available.

*Smart reforms could boost growth in some countries by up to 8 percent in four years (REUTERS)