Another surge in the incidence of COVID-19 will slow down the pace of global economic recovery, and the world will have to adapt to economic shocks, said the head of the International Monetary Fund (IMF) Kristalina Georgieva in an interview with National News January 12.
“We had hoped to get a larger recovery momentum in 2022, but already in the last month of the previous year, we saw that momentum wane. The two major drivers of global economic growth, the United States and China, have slowed down. And then we got hit by Omicron. There is no doubt that this will lead to economic shocks and increase uncertainty. We are currently calculating the exact consequences … but I can already say that, unfortunately, compared to our last forecast in October, the ratings will be downgraded, ”she said.
IMF economists meet every three months to update their forecasts on global economic growth estimates. According to Georgieva, the world will have to adapt to the “shock-prone” reality and ensure broader global cooperation. Despite the impending slowdown in economic growth, the head of the IMF assures that there are many reasons for optimism.
“We have learned to act in a pandemic that still reigns in the world, scientists are working to ensure the protection of our citizens, now we are more effective with each incoming wave, and the restrictions that it causes are becoming softer,” Georgieva said.
In early December, Georgieva already reported on a possible slowdown in economic growth in the world due to the new Omicron coronavirus strain. She clarified that in the current conditions, the United States should devote all its efforts to fighting inflation, which is not necessary for other countries.
At the end of November, Russian President Vladimir Putin, speaking at the VTB Capital forum “Russia Calls!” He noted that the impact of the pandemic on investment, business, cooperation ties is very large, as well as on the entire global economy.
#IMF #warned #economic #shocks