IMF Chief Kristalina Georgieva has given an optimistic projection of the Global Economy and indicated that global recession is declining on account of falling inflation and reopening. She has also revealed that cost of living was the primary reason for surge in global inflation and it is now on the wane.
Cost of Living crisis primary reason behind inflation spike subsides
However she stated that many countries in the world would continue to face inflation, increased food and energy costs and had this to remark,
“We see inflation finally trimming down in quite a number of countries. The chance of finally getting on top of the problem of cost of living being a major disrupter for millions and millions of people, we see light at the end of this tunnel,”
IMF had predicted last month that this year’s global consumer price growth would moderate to 6.6%. Following 8.8% in 2022, this would be 0.1 percentage point higher than the prediction made in October. The IMF also predicted a slowdown to 4.3% in 2024 and lower inflation rates in 84% of nations in 2023 compared to 2022. Global GDP growth is anticipated to reach 2.9% in 2023, which is 0.2 percentage points higher than what the IMF had predicted in October.
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IMF Chief expresses concerns about falling global growth rate
IMF recently had raised its global economic outlook for the first time in a year, which was based on US spending and China’s reopening its economy after Covid. Further IMF Chief Kristalania Georgieva has also expressed concerns about falling global growth owing to Covid Pandemic , Russia’s invasion of Ukraine and deadly earthquake that hit parts of Turkey and Syria.
IMF Chief said,
“The world economy is still in a very difficult place. Global growth is slowing down in 2023 but it might be a turning point,”
Georgieva said this in response to reports that annual inflation has recently declined in the US, the Eurozone, and the UK. She said that there are indicators that inflation is retreating from its four-decade peak. However she has cautioned against over optimism and has cautioned it would still be a painful year for people around the world, and there was a risk stronger growth in China would boost energy prices and make the fight against inflation harder.
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