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Global expansion likely to bottom out in 2023, says IMF managing director

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, highlighted this Tuesday (17) the fact that global growth must “reach its lowest point” of the current cycle in 2023.

During an event at the World Economic Forum, in Davos, she reaffirmed the Fund’s October projection, according to which the world’s Gross Domestic Product (GDP) should grow 2.7% in the current year.

Kristalina Georgieva said that issues such as the Covid-19 pandemic and Russia’s war in Ukraine show that “supply-side security requires some redundancy”, and consequently some extra cost. Anyway, it’s a solution for these contexts, she suggested.

Also present at the same panel, the minister of Foreign Affairs of Saudi Arabia, Faisal bin Farhan Al Saud, highlighted the importance of global energy security.

He said that his country invests billions in renewable energies, but he argued that this will take decades to prevail in the market, especially in developing countries. In this context, he argued for the maintenance of traditional energies, in a gradual transition process.

The Saudi minister also said that the country seeks dialogue with Iran, a regional rival, and reaffirmed the “strong partnership” with the US, even if there are specific differences.

Source: CNN Brasil

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