“In the short term, the immediate priority is to focus on the fiscal aspect. Fiscal buffers have been exhausted, but fiscal pressures are high,” Georgieva said at a press conference during the annual meetings of the IMF and the World Bank (WB). in Washington.
Central banks must “remain vigilant, evidence-based (and) carefully monitor the data to ensure they do not cut too early or too late,” he added.
Meeting marked by uncertainty
World finance chiefs meet in Washington this week amid intense uncertainty over wars in the Middle East and Europe, a weakening Chinese economy and concerns that an unpredictable U.S. presidential election could trigger new trade battles and erode multilateral cooperation.
The annual meetings of the IMF and WB bring together more than 10,000 representatives from finance ministries, central banks and civil society groups, who discuss efforts to boost global growth, address debt difficulties and finance the energy transition.
However, the most important issue, no matter how much we avoid mentioning it, will be the possible victory of the Republican candidate for the presidency of the United States, Donald Trump, in the November 5 elections. It is feared that this outcome would upend the international economic system through the imposition of new tariffs and massive debt by the United States, as well as a move away from climate cooperation.
With information from Reuters
