Economics & Finance

IMF Director expecting 2023 to be “another challenging year”

by AFP via Daily Sabah

Risks to financial stability have increased, International Monetary Fund (IMF) chief Kristalina Georgieva warned on Sunday, as she stressed “the need for vigilance” following the recent turmoil in the banking sector.

Speaking at a forum in Beijing, the IMF managing director said she expected 2023 “to be another challenging year,” with global growth slowing to below 3% due to the war in Ukraine, monetary tightening, and “scarring” from the pandemic.

“Uncertainties are exceptionally high,” with the outlook for the global economy likely to remain weak over the medium term; she told the China Development Forum.

“It is also clear that risks to financial stability have increased,” she added.

“At a time of higher debt levels, the rapid transition from a prolonged period of low-interest rates too much higher rates – necessary to fight inflation – inevitably generates stresses and vulnerabilities, as evidenced by recent developments in the banking sector in some advanced economies.”

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