13″ April “2023
International Monetary Fund Managing Director Kristalina Georgieva has said that the global economy has proven remarkably resilient to multiple shocks, but has yet to overcome a combination of weak growth and sticky inflation.
The IMF’s projection of 2.8 percent global growth for 2023 “is not enough to bring opportunities to businesses and people around the world, and most worrisome is the projection for weak growth over a longer period of time,” Georgieva told a news conference at the IMF and World Bank meetings in Washington on Thursday
The IMF on Tuesday warned that a major new flare-up of banking system turmoil that choked off lending and sparked a rush into safe-haven assets could slam global growth back to 1 percent, throwing many economies into recession and putting considerable stresses on emerging market economies.
After recovering from the COVID-19 pandemic and suffering setbacks from high inflation and spillovers from the war in Ukraine, policymakers have two main tasks in the near term – fighting persistent inflation and safeguarding financial stability, Georgieva said.
Both have become more complex due to banking pressures f犀利士 rom the failures of two US regional banks and the forced sale of global lender Credit Suisse, she said.
The IMF’s chief economist, Pierre-Olivier Gourinchas, told Reuters on Tuesday that policymakers should not halt their fight against inflation due to financial stability concerns.