HomeFinancial MarketsIMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth

IMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth

International Monetary Fund managing director Kristalina Georgieva on Sunday called for caution as risks to financial stability continue to rise. Georgieva went on to state that she expects 2023 to be another financially challenging year, with global economic growth slowing to 3% following the pandemic, the war in Ukraine, and the tight fiscal policies being implemented by central banks in an effort to suppress mounting inflation.

Georgieva added that while the global economic outlook for 2024 is set to improve, economic growth is expected to remain below its historic average of 3.8%. Currently, the IMF predicts global growth of 2.9% this year, with updated forecasts set to be released next month.

“So, we continue to monitor developments closely and are assessing potential implications for the global economic outlook and global financial stability,” Georgieva stated at the China Development Forum, adding that particular attention will be paid to the most vulnerable countries.

The IMF chief did state, however, that China’s rapid economic rebound, with a projected GDP growth of 5.2% this year, is a good sign for the world economy.

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