IMF chief Kristalina Georgieva expects global economic soft landing
Georgieva says interests rates will start coming down from about midyear
London — The IMF is now “very confident” that the global economy will see a soft landing, its MD Kristalina Georgieva said on Monday.
She said that interest rates would start coming down from about midyear.
“We are very confident that the world economy is now poised for this soft landing we have been dreaming for,” after some of the sharpest interest-rate hikes in decades, Georgieva said at the World Governments Summit in Dubai.
On the prospect of interest rates being cut in leading economies such as the US, she said: “I expect to see by midyear interest rates going in the direction inflation has been going on for the last year.”
Georgieva warned people to expect the unexpected in the wake of the Covid-19 and said a prolonged war between Israel and Hamas would affect global economies. “I fear most a longevity of the conflict because (if) it goes on and on the risk of spillovers go up,” said the IMF chief.
“Right now we see a risk of spillover from the Suez Canal,” she said, referring to attacks on ships in the Red Sea. “But if there are other unintended consequences in terms of where the fighting goes, then it can become much more problematic for the world as a whole.”
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