International Monetary Fund Director-General Kristalina Georgieva confirmed that the world economy has shown remarkable flexibility. Despite successive shocks, growth has remained stable at 3.3%, at the same time warning that this flexibility is now facing new challenges.
But he explained in an interview with Bloomberg TV on the sidelines of the fund’s conference: “A 10% increase in energy prices in one year would increase global inflation by 40 basis points and slow economic growth by 0.1% to 0.2%.”
He said many Asian countries have strengthened their financial capacity and reserves over the past two decades, but warned that past shocks have reduced fiscal reserves and many are facing a Middle East crisis.
The report advised countries to act decisively to ensure stability in a world of increasing uncertainty and called on policymakers to closely monitor price and monetary developments, stressing the need to rebuild fiscal reserves during periods of economic prosperity.
International Monetary Fund Managing Director Kristalina Georgieva acknowledged that the global economy has shown remarkable resilience. Growth has held steady at 3.3% despite a series of shocks, but it warns that this resilience is now facing new challenges.
But she made it clear in an interview with Bloomberg TV on the sidelines of a conference hosted by the fund that a 10% rise in energy prices in one year would raise global inflation by 40 basis points and slow economic growth by 0.1% to 0.2%.
He noted that many Asian countries have strengthened their fiscal capacity and reserves over the past two decades, but warned that past shocks have reduced fiscal reserves and many are facing a Middle East crisis.
He advised countries to take decisive action to ensure the stability of their situations in an increasingly uncertain world, and called on policymakers to closely monitor price and monetary developments, stressing the need to rebuild fiscal reserves during a period of economic prosperity.
