Georgieva from the IMF raises alarm over global economic worries such as inflation and debt | Global News

The head of the International Monetary Fund, Kristalina Georgieva, delivered a sobering assessment of the global economy at the spring meeting of the IMF and World Bank on Thursday. Despite the resilience shown in the face of higher interest rates and geopolitical tensions in Ukraine and Gaza, Georgieva warned that there are still plenty of reasons to worry.

“Inflation is down but not gone,” Georgieva stated, highlighting the challenges faced by countries like the United States in bringing down inflation despite strong economic growth. She also raised concerns about the rising levels of government debt around the world, urging countries to improve tax collection and public spending efficiency to build fiscal resilience.

The IMF expects the global economy to grow by 3.2 per cent this year, with modest upgrades from previous forecasts. However, Georgieva emphasized that global growth remains weak compared to historical standards, citing disappointing improvements in productivity as a key factor.

Georgieva pointed to the United States as an exception to the sluggish productivity gains, attributing it to the country’s business-friendly environment and lower energy costs. She suggested that countries could boost their economies by cutting bureaucratic red tape and increasing female participation in the workforce.

As the world continues to navigate through economic uncertainties, Georgieva’s warnings serve as a reminder of the challenges that lie ahead and the importance of proactive measures to strengthen global economies.