“There hasn’t been such a pale picture in the economy for a long time”: Dzhugale

Former director The World BankMarcelo Jugale, spoke in Living Aristegui following a meeting between International Monetary Fund (IMF) and The World Bank.

According to the scientist, “Washington is upset” because now is not the best time for the world economy. The IMF released forecasts that were even more negative than those it had given, predicting global economic growth in 2023 by 2.8%

“Any growth below 3% It’s alarming,” Jugale said. He added that “decades ago we did not see such a pale picture.”

In addition to the low growth forecast for this year, the IMF adds that there are risks down. Among them are inflation, state debt what was allowed to come after the Covid-19 pandemic and fragmentation world trade and foreign investment, which, according to the former director of the World Bank, particularly affect Latin America.

Marcelo Giugale notes that the economy is recovering slow and risky, cobblestone is a good term to describe it. Except, Latin America It will have a “pretty poor performance” in 2023 as Brazil and Mexico, which will be the main drivers of the economy in the area, are not going to grow much this year.

According to IMF forecasts, slow growth could last up to five years.

In the financial panorama that has been observed in recent weeks with the collapse of large banks, the academic mentions that with the constant increase in interest rates, there may be a risk that government bonds, in which rich countries invest part of their reserves, lose value, and with it banks lose part of its liquidity.

He added that what is currently observed is that social media They play a very important role in the global financial market. “If you undermine the credibility of the bank with your tweet, the financial system will stop working,” says Marcelo.

The scientist adds that he does not see that the Basel Committee on Banking Supervision has a solution to the risk associated with social networks.

Source: Aristegui Noticias

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