The International Monetary Fund's (IMF) Kristalina Georgieva spoke on Thursday about the global economy's resilience in the face of several challenges, including the ongoing coronavirus pandemic and the war in Ukraine. Despite these adversities, the IMF leader noted a remarkable economic resilience, from her address in Abidjan, Ivory Coast.
Georgieva acknowledged the impact of rising interest rates on the global economy, recognizing them as a critical concern. This comes amidst recent actions by the U.S. Federal Reserve to implement anti-inflation measures. She also highlighted the U.S.'s return to pre-pandemic output levels, indicating signs of recovery.
However, despite this resilience, Georgieva revealed a significant $3.7 trillion economic output loss due to shocks since 2020. She further projected growth below the past two-decade average of 3.8%, reflecting the lingering effects of these global events.
Georgieva also expressed concern over the poorest countries' limited ability to buffer their economies against such shocks. She suggested potential for a soft landing while reducing inflationary pressure, indicating a cautious optimism for future economic stability.
In addition to these insights, Georgieva confirmed Marrakesh as the venue for the upcoming fall meetings of IMF and World Bank. These meetings are expected to further discuss these pressing economic issues and strategies to address them.
The IMF is expected to release official growth forecasts soon, which will provide further insights into the projected economic landscape in light of these challenges.
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