December 23, 2024

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The global economic recovery has stalled due to several crises (International Monetary Fund)

AtlasInfo

We are facing one crisis after another. The war that increases the epidemic. It is as if we have been hit by a new storm before we recover from the previous one,” the head of the International Financial Corporation lamented during a press conference held on Wednesday in Washington on the occasion of the Spring Meetings of the International Monetary Fund and the World Bank.

Ms Georgieva noted that the International Monetary Fund had to cut its global growth forecast for this year and 2023 to 3.6%, with a drop for 143 countries, explaining that this was “largely” due to the war in Ukraine and the “shock waves it caused” around the world”.

She pointed out that “the other result is acceleration of inflation, which has become a clear and present danger for many countries: high food and fuel prices are straining the budget of ordinary families to the point of collapse.”

Likewise, she added, the financial crisis, high debt levels, and frequent and widespread shutdowns in China – which are causing new bottlenecks in global supply chains – “are all additional black clouds weighing on the global economy.”

To correct this situation, the head of the International Monetary Fund first calls for an immediate end to hostilities in Ukraine.

Regarding inflation, Ms Georgieva explained that it requires urgent action from central banks. “They need to keep their fingers on the pulse of the economy and adjust their policy if necessary,” she said.

The head of the Bretton Woods Foundation also warned of the risks posed by high food prices to poor countries, saying coordinated international action was “essential” to avoid the food crisis.

Moreover, to meet the debts of poor countries, which were exacerbated by accelerating inflation, Ms. Georgieva appealed for a fairer tax policy capable of rationalizing state budgets.

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