He International Monetary Fund (IMF) And World Bank (WB) start this monday at Washington of their spring meetings, which will provide an update on global growth projections under uncertainty when 90% economy advanced will grow less.
This was announced last Thursday at a public event by IMF Managing Director Kristalina Georgieva. After the days of “climbing from one mountain to another” – with COVID-19 war Ukraine And inflation- where most countries proved to be “steady climbers”, mountainous terrain did not end.
It is expected that in the next five years overall growth from all over 3%the lowest medium-term growth forecast since 1990 and well below the two-decade average of 3.8%.
“It will make it difficult to reduce poverty, heal the economy from the wounds of the crisis and provide new and better opportunities for everyone,” Georgieva warned.
Nearly all of the world’s major economies will experience slower growth. Only Asian powers love China or India which will account for half of global growth in 2023, the director of the Fund said.
Eurozone And USA they face “steeper growth” as interest rates affect demand.
To cool the economy and bring down inflation, Federal Reserve Since March 2022, a series of interest rate hikes has been carried out in the United States. A total of nine increases range from 4.75% to 5%, the highest in 16 years.
For his part, he European Central Bank It has raised rates six times since July 2022, and today they are 3.5%, the highest since 2008.
This increase, Georgieva noted, will have implications for economic growth and will continue until inflation falls significantly. This is necessary and recommended, the managing director said.
“As long as financial pressures remain limited, we expect central banks to stay on course to fight inflation while maintaining a firm stance to prevent lower inflation expectations,” he said.
The IMF will release its report next Tuesday, and it will be seen whether the latest estimated growth figures for 2023 will 2.9% announced in January.
The institution will also release two other papers this week, the Fiscal Monitor and the Global Financial Stability Report, which are expected to summarize banking health after the recent attempted banking crisis in the US and Europe.
According to Georgieva, after this crisis – “expected” due to rising interest rates – it was shown that “the banking sector has come a long way since financial crisis world 2008″.
“Today, banks are generally stronger and more resilient, and the authorities have acted surprisingly quickly and thoroughly in recent weeks,” said Georgieva, noting that, however, “concerns remain about vulnerabilities that could be hidden” and “currently no time for complacency.”
During the week starting this Monday, World Bank and Fund leaders will be meeting with ministers and leaders of financial institutions to discuss the state of the global economy and major challenges ahead.
According to Georgieva, there are three priorities for action: fighting inflation and ensuring financial stability; improve growth prospects in the medium term by boosting productivity and building solidarity to reduce inequalities.
Participants of these spring meetings will hold private meetings and public debates that will discuss various topics such as public debt, women’s economic empowerment, public spending or digital investment and innovation.
These will be the last meetings for American World Bank President David Malpass, who announced last February that he would leave office in June in search of new job opportunities.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
