The Director General of the International Monetary Fund urged, Kristalina Georgieva, Governments are working to address the growing financial challenges, calling on central banks to continue their commitment to reducing inflation, at a time when the global economy is facing growing pressures.
She said: “All countries must address their financial problems and develop and announce credible plans to ensure that their debts and deficits remain on a sustainable path.” She added: “Central banks must remain fully focused on their tasks related to price stability.”
She explained that the global economy has so far shown an ability to withstand the ongoing inflation and trade tensions, supported in part by accelerating investments in… artificial intelligence. But she indicated that uncertainty about the economic outlook remains high, which is reflected in increased returns Bonds And insufficient progress has been made in reducing inflation.
Georgieva pointed to a number of risks that threaten the outlook for the global economy, including a decline in inventories Oil and gas, as the countries of the Northern Hemisphere head towards winter, in addition to the possibility of a severe climate pattern resulting from the “El Niño” phenomenon that may increase food insecurity, in addition to the impact of artificial intelligence on financial stability.
She said: “All of this leaves no room for complacency, and this is my main message. Our performance was not very bad, but that should not be a reason to say: OK, everything is fine, things are easy.”
Speaking about the IMF’s ongoing oversight review, Georgieva said the fund “seeks greater use of scenarios and contingency planning to help countries move more flexibly in a world of greater uncertainty.”
