International Monetary Fund CEO Issues Urgent Warning on State of Global Economy
Kristalina Georgieva, managing director of the International Monetary Fund, said that the global economic system is in a weak position due to attempts by world central banks to fight inflation.
Among the consequences, Georgieva mentioned primarily financial instability and slowing economic growth, but at the same time emphasized that at present the world is not threatened by a repeat of the financial crisis that occurred in 2008.
She added: “Currently, the financial system, banking and non-banking, is much cleaner, but this does not mean that there are no weak spots. We warned last year that interest rates shouldn’t rise too much after they’ve been low for a long time.”
Last Thursday, the Director-General announced that global growth would remain at 3 percent over the next five years, the lowest medium-term forecast since 1990.
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