While the government of French President Emmanuel Macron is looking to reduce spending over the coming years, the current plan isn’t expected to fall below the European Union limit of 3% of gross domestic product until 2027.

Still, the IMF’s chief economist believes that the French government is on the right track to reducing the deficit. “The budget path that the government is planning is going in the right direction,” Gourinchas said, going on to suggest that “it’s perhaps moving a little too slowly.” Given that it still appears to be too early to lower interest rates given the current state of the fight against inflation, the economist suggested that the government pursue other policies to bring about faster change.

The post France Unlikely To Reach Budget Deficit Target, IMF Claims 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.

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.

The post IMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth appeared first on theprimarymarket.com.

Inflation was already riding a major wave and now it seems as though this trend is only going to continue. If you ask the IMF, they believe the global economy will only grow a minuscule 3.2% this year, which is less than the initially predicted 3.6%—a percentage that was already pretty tame to begin with. To add further perspective, early 2022 brought projections that were around 4.4%, so it’s safe to say that progress has been nothing short of a disaster.

U.S. growth projections were also taken down a few notches, sliding from its 3.7% forecast in April to a lowly 2.3%. According to the IMF’s World Economic Outlook, “The risks to the outlook are overwhelmingly tilted to the downside.”

But while the economy looks bleak, there are still those who remain optimistic, citing occasional victories as beacons of hope. These are great to celebrate, but realists are more concerned with trying to stop the bleeding while it’s happening.

The post IMF Global Growth Projections Slide Even Lower appeared first on theprimarymarket.com.

While the government of French President Emmanuel Macron is looking to reduce spending over the coming years, the current plan isn’t expected to fall below the European Union limit of 3% of gross domestic product until 2027.

Still, the IMF’s chief economist believes that the French government is on the right track to reducing the deficit. “The budget path that the government is planning is going in the right direction,” Gourinchas said, going on to suggest that “it’s perhaps moving a little too slowly.” Given that it still appears to be too early to lower interest rates given the current state of the fight against inflation, the economist suggested that the government pursue other policies to bring about faster change.

The post France Unlikely To Reach Budget Deficit Target, IMF Claims 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.

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.

The post IMF Calls For Caution As Financial Instability Threatens Stunt Global Economic Growth appeared first on theprimarymarket.com.

Inflation was already riding a major wave and now it seems as though this trend is only going to continue. If you ask the IMF, they believe the global economy will only grow a minuscule 3.2% this year, which is less than the initially predicted 3.6%—a percentage that was already pretty tame to begin with. To add further perspective, early 2022 brought projections that were around 4.4%, so it’s safe to say that progress has been nothing short of a disaster.

U.S. growth projections were also taken down a few notches, sliding from its 3.7% forecast in April to a lowly 2.3%. According to the IMF’s World Economic Outlook, “The risks to the outlook are overwhelmingly tilted to the downside.”

But while the economy looks bleak, there are still those who remain optimistic, citing occasional victories as beacons of hope. These are great to celebrate, but realists are more concerned with trying to stop the bleeding while it’s happening.

The post IMF Global Growth Projections Slide Even Lower appeared first on theprimarymarket.com.