International Monetary Fund (IMF) President Kristalina Georgieva made assessments of the global economy at the opening of the 23rd Jacques Polak Research Conference.
Stating that the global economy has suffered shocks one after another, Georgieva said that the effects of the Russian war in Ukraine and the ongoing epidemic exert great pressure on the global economic outlook.
Kristalina Georgieva said inflation is at its highest levels in decades with rising food and energy prices, continued supply chain disruptions and growing debt vulnerability.
Pointing to tightening financial conditions, Georgieva said: “The biggest and most pressing challenge facing central banks in both advanced and emerging market economies is to reduce inflation.”
NO SPACE FOR WRONG STEPS
Georgieva explained that central banks have tightened monetary policy to ensure price stability, hayvanların difficulties remain on how to manage the tightening cycle.
IMF director Georgeiva stressed that fiscal policymakers should take targeted measures to reduce rising food and fuel prices, avoiding measures that fuel inflation or hinder monetary policy.
On the other hand, IMF First Vice President Gita Gopinath said in the same conference that the strengthening of the dollar and concerns about financial fragility pose great challenges in the current environment and there is no room for wrong steps.
Noting that another major challenge is the increased risk of geoeconomic disintegration, Gopinath added that the Covid-19 outbreak and the war in Ukraine have significantly increased the risks.