IMF President Georgieva stated that the world economy is extremely resilient

Kristalina Georgieva, President of the International Monetary Fund (IMF), made remarks on the global economy at an event organized by the Swiss Institute of International Studies affiliated with the University of Zurich.

Georgieva noted that since 2020, the world economy has become more susceptible to shocks, yet it has demonstrated remarkable resilience despite all these shocks. She said, “We are not in a global recession.”

Georgieva mentioned fears last year that most economies would enter a recession but stated that this did not materialize.

“Inflation is declining almost everywhere.” Georgieva stated that they predict a growth rate of 3.2 percent for this year and the next, adding, “Inflation, which has hit us hard, is declining almost everywhere.”

Regarding geopolitical concerns, Georgieva responded, “The most dramatic thing we see is the world being engulfed in wars.”

Pointing to Russia’s ongoing war in Ukraine and Israel’s occupation of Gaza, Georgieva mentioned that it is difficult to have a rational conversation about economic priorities during times of war.

Comparison to a “tsunami hitting the labor market” for artificial intelligence Georgieva also emphasized facing transformative forces, particularly highlighting that artificial intelligence could affect 60 percent of jobs in advanced economies and 40 percent globally in the next few years. She likened this to a “tsunami hitting the labor market.”

Georgieva noted there is very little time to prepare people and businesses for this, but if managed well, it could lead to “tremendous” productivity increases, although it could also lead to more misinformation and inequality.

Meanwhile, Georgieva’s speech was interrupted several times by protesters calling for action on climate change and combating the debts of developing economies.

At the same event, Thomas Jordan, President of the Swiss National Bank, stated that the fight against inflation in Switzerland has reached an advanced stage. Jordan mentioned that the inflation outlook is much better but there is a lot of uncertainty.

source: prepared by Melisa Beğiç

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