“The global economy risks becoming stuck on a path of low growth and high debt” and this translates into “lower incomes and fewer jobs,” Georgieva said.
The director of the International Monetary Fund (IMF), Kristalina Georgieva, warned this Thursday that the world economy runs the risk of entering a spiral of slow growth and high debt, in the face of conflicts and geopolitical rivalries.
“These are anxious times”The general director of the IMF said, quoted by the Associated Press, to journalists at the fall meetings of the institution she heads and the World Bank.
the responsible person He described as “anemic” the forecast that the world economy will grow by 3.2%.
Against a backdrop of conflict and growing geopolitical tension, global trade is losing momentum, while relations between the United States of America and China, the world’s two largest economies, have cooled.
“Trade is no longer the powerful engine of growth,” he said, adding that Currently there is “a more fragmented global economy.”
The AP also notes that a A large number of countries continue to face the debts they incurred to combat Covid-19and the IMF believes that global debt will reach 100 billion dollars (95.58 billion euros) this year, which is equivalent to 93% of the world’s Gross Domestic Product (GDP).
“The global economy risks becoming stuck on a path of low growth and high debt,” he said, stressing that this translates into “lower incomes and fewer jobs.”
Still, the The IMF notes that the world has made considerable progress in controlling inflation, which increased in 2021 and 2022as economies were unexpectedly shaken by pandemic lockdowns.
Kristalina Georgieva expects inflation to fall to 2% next year for developed economies, the objective of central banks.
“For much of the world, a soft landing is in sight,” he said.
In its latest report on the global economic outlook, published on Tuesday, the IMF forecasts that the Chinese economy will grow 4.8% this year and 4.5% in 2025, up from 5.2% in 2023.
Thus, the director of the IMF urged the Chinese Executive to abandon dependence on exports and promote domestic consumption, which she described as “more reliable.”
Kristalina Georgieva He called for the adoption of “incisive measures” to respond to the collapse of the Chinese property market. and thus increase consumer confidence.
“If China does not act, the growth potential could be well below 4%,” he predicted.
Source: Observadora
