According to Georgieva, rising geopolitical tension and persistent inflation are threatening the ability of the global growth rate to rise. Currently, growth remains well below the average 3.8% growth that has been experienced over the past two decades.

Georgieva sees emerging economies such as India and China as the strongest performers going forward, while she expects approximately 90% of advanced economies to experience a decline in growth over the course of the year.

Following the collapse of Silicon Valley Bank in the U.S. and Credit Suisse, Georgieva has called on central banks to “address financial stability risks when they emerge through appropriate provision of liquidity.”

“The key is to carefully monitor risks in banks and non-bank financial institutions, as well as weaknesses in sectors such as commercial real estate,” the IMF director recommended. She does believe, however, that further interest rate hikes are needed to beat down persisting inflation.

The post IMF Warns That World Economy Headed For Weakest Growth Since 1990 appeared first on theprimarymarket.com.

Developed countries accounted for the majority of the decline, with the total debt of wealthier nations falling by $6 trillion over the past year to $200 trillion. In contrast, developing world debt was on the rise, hitting a new record high of $98 trillion with India, Mexico, Russia, Singapore, and Vietnam leading the surge.

“The external public debt burden of many developing countries worsened due to sharp losses in local currencies (in 2022) against the dollar.” the Institute of International Finance observed. The global banking trade group added that the emerging market government debt-to-GDP ratio increased to 65% of GDP from just under 64% in 2021.

JP Morgan expressed a less optimistic outlook on the current global debt predicament. While the investment bank acknowledged the annual decline, it highlighted that the rise since the global financial crisis in 2008 has been “explosive”.

The post Global Debt Sees Annual Drop for First Time Since 2015 appeared first on theprimarymarket.com.

According to Georgieva, rising geopolitical tension and persistent inflation are threatening the ability of the global growth rate to rise. Currently, growth remains well below the average 3.8% growth that has been experienced over the past two decades.

Georgieva sees emerging economies such as India and China as the strongest performers going forward, while she expects approximately 90% of advanced economies to experience a decline in growth over the course of the year.

Following the collapse of Silicon Valley Bank in the U.S. and Credit Suisse, Georgieva has called on central banks to “address financial stability risks when they emerge through appropriate provision of liquidity.”

“The key is to carefully monitor risks in banks and non-bank financial institutions, as well as weaknesses in sectors such as commercial real estate,” the IMF director recommended. She does believe, however, that further interest rate hikes are needed to beat down persisting inflation.

The post IMF Warns That World Economy Headed For Weakest Growth Since 1990 appeared first on theprimarymarket.com.

Developed countries accounted for the majority of the decline, with the total debt of wealthier nations falling by $6 trillion over the past year to $200 trillion. In contrast, developing world debt was on the rise, hitting a new record high of $98 trillion with India, Mexico, Russia, Singapore, and Vietnam leading the surge.

“The external public debt burden of many developing countries worsened due to sharp losses in local currencies (in 2022) against the dollar.” the Institute of International Finance observed. The global banking trade group added that the emerging market government debt-to-GDP ratio increased to 65% of GDP from just under 64% in 2021.

JP Morgan expressed a less optimistic outlook on the current global debt predicament. While the investment bank acknowledged the annual decline, it highlighted that the rise since the global financial crisis in 2008 has been “explosive”.

The post Global Debt Sees Annual Drop for First Time Since 2015 appeared first on theprimarymarket.com.