The DDirector of the International Monetary Fund (IMF), Kristalina Georgievadeclared on Thursday that increased demand for services and attempts to reduce inflation have increased the chance that the global economy will avoid recession, but fiscal and financial risks remain, Reuters reports.
Featured Statements
“The global economy has shown remarkable resilience, and the first half of 2023 has brought some good news, largely due to stronger-than-expected demand for services and tangible progress in combating inflation.”
“This increases the chances of a soft landing for the global economy. But we cannot let our guard down.”
“Global growth is well below the 3.8% pre-pandemic average“
“The fight against inflation remains a priority”
“We warn that inflation will remain above the target for some countries until 2025”
“Medium-term growth prospects have weakened further“
“Winning the fight against inflation requires interest rates to stay higher for longer”
“The US and India are bright spots, but most advanced economies are slowing and China’s production is below expectations.”
“It is estimated that the accumulated global production loss due to successive shocks since 2020 amounts to 3.7 trillion dollars.”
“The sudden spike in inflation could lead to a sharp tightening of financial conditions.”
“We warn of significant risks on the fiscal front in many countries, higher interest rates have increased debt burdens.”
Market reaction
After these comments, the Dollar continues to decline. At the time of writing, the Dollar Index is down 0.02% and is trading above 106.35 today.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
