During the World Economic Forum (WEF) in Davos, Kristalina Georgieva, the director of the International Monetary Fund (IMF), ruled out the possibility of a global recession in 2023.
Nevertheless, she was cautious about the recovery of the global economy, which could grow 2.7 percent this year, according to the latest IMF forecast.
These statements were made during a panel on growth policies in which the European Central Bank (ECB) President Christine Lagarde, the Central Bank of Japan Governor Haruhiko Kuroda, and the French Finance Minister Bruno Le Maire were also present.
Georgieva acknowledged that her view of the global economy is slightly more optimistic than it was two months ago due to the trend decline in inflation and China’s growth prospects.
Global business experts have predicted that China’s decision to optimise its #Covid response will strengthen global #supply chains & boost #tourism in many countries. China is committed to playing a positive role in global growth while growing its own economy. pic.twitter.com/7F4Q5oF51Z
— Zheng Zeguang (@AmbZhengZeguang) January 3, 2023
She also believes that the job market is “in great shape” and consumers are “consuming and sustaining growth.”
Without wanting to position herself “neither too optimistic nor too pessimistic”, she warned of risks related to the reversal of the current inflation trend and the interruption of supply chains, which are consequences of the Ukrainian conflict.
For her part, the ECB President Lagarde mentioned that the outlook for the global economy is improving as the Chinese economy recovers. For this year, China’s gross domestic product (GDP) is expected to grow by 5.5 percent.
