The International Monetary Fund (IMF) Managing Director Kristalina Georgieva, speaking at the World Government Summit (WGS), described the Fund’s outlook for 2023 as “less bad, not good” given that the Fund has forecast a slowdown in economic growth this year and inflation remained a concern.
The head of the IMF said that financial markets have good reason to be more upbeat, pointing to the U.S. economy likely avoiding recession and China’s reopening from pandemic controls.
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Positive factors were resilient U.S. and EU labor markets, China’s reopening, and “surprisingly good results of central banks tightening up financial conditions and inflation finally trimming down, although the fight is not yet won”, she added.
Asked whether there would be more doses of monetary tightening, Georgieva said the Fund expected monetary tightening this year but did not project it would continue “way into” 2024.
“The markets have good reason to be more upbeat because what they are finally seeing is the U.S. economy likely to avoid recession…they are also seeing China re-opening and Chinese consumers rushing to spend the money they saved during the pandemic, the lockdown,” she said.
Also meeting Egypt’s President Abdel Fattah El Sisi, Georgieva took to Twitter by saying: “Encouraged by direction of government’s reform program. Emphasized the need to further stimulate the private sector. We remain committed to working closely with Egypt for the benefit of its people.”
The IMF chief also met with Sultan Ahmed Al Jaber, Chief Executive Officer of the Abu Dhabi National Oil Company (ADNEC). The two discussed key UAE’s COP 28 objectives, including stepping up climate finance. “A unique opportunity to allow global cooperation to deliver when most needed. Time is not on our side and we need everyone on board,” she tweeted.
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