international IMF chief Kristalina Georgieva said on Thursday that despite the shocks of the war in Ukraine and Gaza and high interest rates, the world economy has proved surprisingly strong, but there is still a lot to worry about. Georgieva told reporters at the meeting of the Monetary Fund and partner organization World Bank, “Inflation has reduced globally, but it has not ended. Apart from this, government debt is also increasing around the world.”
Increasing government debt is a challenge
He said that one aspect of the unexpectedly strong economic growth in America is that it is taking longer than expected to bring down inflation. Georgieva warned about rising government debt around the world, saying that last year it reached 93 percent of global economic output. He urged countries to collect taxes and spend public funds more efficiently. “In a world where crises keep coming, countries must urgently implement fiscal consolidation to prepare for the next shock,” he said.
Global economy will grow by 3.2% this year
Just a day earlier, the Monetary Fund had expressed hope that the global economy would grow at the rate of 3.2 percent in the year 2024. Apart from this, the same growth rate has been predicted in the year 2025 also. Georgieva said one reason for sluggish global growth is disappointing improvements in productivity. He also attributed this to the increasing age of the workforce in many countries. She said countries can help their economies by reducing red tape and employing more women.
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