WASHINGTON (AP) — The director of the International Monetary Fund (IMF), Kristalina Georgieva, warned this Thursday about stagnation in the world economy as a result of the “hangover” of the Coronavirus pandemic and some war conflicts.
Georgieva announced that global public debt will exceed $100 trillion this year. This would be equivalent to 93% of global economic output, a proportion that is expected to approach 100% by 2030.
He added in an interview with the news agency that “world trade is mediocre due to growing geopolitical tension.”
“The economy world risks stagnating on a path of low growth and high debt,” said Georgieva. “That means less income and fewer jobs”
Report
The IMF says the world has made considerable progress in curbing inflation that soared in 2021 and 2022, when economies recovered with unexpected strength from pandemic lockdowns. He attributes this to the rise in interest rates driven by lto Federal Reserve and other central banks and to reduce delays in factories, ports and cargo warehouses that had caused shortages, delays and rising prices.
In rich countries, the IMF It is expected that inflation will decline next year to the 2% that central banks are pursuing. And price pressures have eased without triggering a global recession. “In most parts of the world a soft landing is on the horizon,” Georgieva said.
But many people continue to struggle with high prices and economic uncertainty. World leaders tell you that their economies are relatively healthy, but ordinary people “don’t feel good about their economic prospects.”
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