risks financial The head of the International Monetary Fund, Kristalina Georgieva, has warned that stability has increased on Sunday, she said. need for vigilance” in the wake of the recent unrest in The banking sector.
Speaking in a forum in Beijing, Department of the International Monetary Fund director She said she expects 2023 to be “another challenge year”,” with global growth slowing down below 3% due to the war in Ukraine, monetary tightening, and the “scars” of the epidemic.
Uncertainty is exceptionally high. with look for the global economy Probably remain weak over average term; She told the China Development Forum.
“that it also clear that involve risks financial increased stability added.
“in time of higher debt Levels, fast transition from a long time of Too low interest rates higher rates – it is necessary fight Inflation – inevitably generates pressures and vulnerabilities, as evidenced by recent developments in The banking sector in some advanced economies.
Her comments came after financial The sector was shaken by the collapse of Silicon Valley Bank (SVB) and its forced takeover of Swiss bank Credit Suisse from rival UBS, leading for fears of Contagion.
Bank shares landed on Friday also concerns about financial The health of the sector has re-emerged. German Chancellor Olaf Scholz had to give Reassurances about Deutsche Bank after the troubled lender has long come into focus of Investor concerns.
Georgieva said policymakers acted decisively in response to financial stability risks.
“These measures have eased market Somewhat stress, but high uncertainty, which confirms need for She said “vigilance”.
However, the head of the International Monetary Fund referred to China’s recovery as a bright spot for the world economy. The International Monetary Fund expects China economy To grow this 5.2% yeardriven by recoil in private Consumption as it reopens after its pandemic isolation.
“A strong recovery means that so is China set to calculate for around one-third of global growth in 2023 – Give a welcome lift to world economyshe said.
Increased 1.0% point in gross domestic product (GDP) growth in China is leading, up 0.3% points in growth in other Asian economies, on Medium – a welcome boost.”
Georgieva urged Chinese policymakers to strive to increase productivity and rebalance economy Away from investment and towards more Stable consumption-driven growth.
Market-oriented reforms to settle playing domain between private sector and state-owned enterprises, together with investments in Education, which greatly raises the economy’s productive capacity.”