2024-04-20 09:16:23
The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, the only candidate for her own succession, yesterday highlighted the “resilience of the world economy”, driven in particular by the good performance of the US.
In her traditional speech launching the spring meetings of the IMF and the World Bank (WB), which will be held starting Tuesday in Washington, Georgieva was pleased to see a “relatively stronger” world economy than expected.
“Global growth is slightly stronger due to robust activity in the United States and many emerging market economies,” the IMF managing director said.
The US economy grew 2.5% last year, according to official figures, far outpacing other advanced economies.
“Robust household consumption and business investment, and a reduction in supply chain issues helped,” Georgieva added.
“And inflation is falling, somewhat faster than expected.” The IMF will publish an update to its World Economic Outlook (WEO) report on Tuesday, with updated country-by-country growth forecasts.
Georgieva’s statements suggest that the IMF expects the global economy to grow more than it had predicted in January, when it forecast growth of 3.1% for 2024 and 3.2% for 2025.
“It’s tempting to breathe a sigh of relief. “We have avoided a global recession and a period of ‘stagflation’ that some had predicted,” she said, referring to the combination of high inflation and stagnation.
“But there are still many things to worry about,” he pondered. This is a relative economic strength, which is part of a “disappointing” decade, with an average medium-term growth just above 3%.
To improve in the future, it is necessary to develop “good policies,” in particular combating “inflation and debt and promoting the transformation of the economy to increase productivity, inclusion and lasting growth,” he expressed. /AFP
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2024-04-20 09:16:23