IMF Chief: Global Economy Resilient Amidst COVID, War, and High Rates

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has praised the global economy for its “remarkable resilience” in the face of multiple challenges, including the COVID-19 pandemic, the war in Ukraine, and rising interest rates. Speaking in Abidjan, Ivory Coast, ahead of the IMF and World Bank fall meetings, Georgieva acknowledged that while recovery continues, it remains slow and uneven.

She highlighted that global economic growth is expected to remain below the 3.8% average of the past two decades, with the world having lost $3.7 trillion in economic output due to various shocks since 2020. The United States is the only major economy to have fully recovered to its pre-pandemic levels, while the rest of the world lags behind.

Georgieva emphasized that the poorest countries are suffering the most due to their limited capacity to support their economies and vulnerable populations. China’s economic recovery has also been slower than anticipated, despite the relaxation of strict COVID-19 policies.

However, the IMF Chief noted that the global economy has shown resilience in the face of higher interest rates, introduced by central banks to combat inflation. She expressed optimism that a “soft landing” without a recession is possible, emphasizing the importance of central banks maintaining higher interest rates for longer to control inflation.

The IMF-World Bank meetings, set to begin in Marrakesh, Morocco, next week, will likely delve deeper into these economic challenges and potential solutions.

^{Re-reported from the article originally published in The Republic TV English}