Deterioration of the world economy will bottom out

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, expressed confidence that the deterioration in global economic activity will bottom out this year and that growth will accelerate again in 2024.

“Our projection is that we will be down half a percentage point from 2022. However, the good news is that we expect growth to bottom out this year and 2024 to be a year where we finally see the global economy pick up,” Georgieva said. in statements.

In an article published by Georgieva, the Bulgarian economist warned that the reversal of the global integration process of the economies threatens to lead to a new cold war with economic blocs in conflict, with an adverse impact on world GDP of up to seven percentage points in in the event of severe geoeconomic fragmentation.

On the other hand, the managing director of the IMF reiterated that the central banks have not yet reached the end of the tightening of their monetary policies, given that inflation is slowing down but remains “quite high”.

“Central banks need to be careful not to take their foot off the brake too soon”, she added, after last week the US inflation rate hit its lowest level since October 2021, while inflation in the euro zone fell for the second month in a row in december.

As for China, which recently announced GDP growth of 3% in 2022, Georgieva repeated that the IMF projections call for GDP growth, although the Asian giant will not account for as large a share of global growth as in the past.

K. Tovar

Source: Bolsamania

(Reference image source: file)

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