Kristalina Georgieva, the head of the International Monetary Fund, urged ongoing vigilance in a speech given on Sunday in Beijing, warning that risks to financial stability have increased despite efforts by leading nations to reduce market stress.
The Managing Director of the IMF reaffirmed her belief that 2023 would be another difficult year, with global growth dropping to less than 3% as a result of the pandemic’s aftereffects, the conflict in Ukraine, and monetary tightening.
She stated at the China Development Forum that even with a more optimistic prognosis for 2024, global growth will still be significantly below its historical average of 3.8 percent and the outlook will remain dim overall.
New predictions from the IMF are expected next month.
In the wake of bank failures, officials in advanced economies, according to Georgieva, had taken significant action to address risks to financial stability. This somewhat reduced market stress, but continuous vigilance was required.
She added that the IMF was paying close attention to the most vulnerable countries, especially low-income countries with high levels of debt. “So, we continue to monitor developments closely and are assessing potential implications for the global economic outlook and global financial stability,” she said.
