International Monetary Fund Director Kristalina Georgieva warned of a difficult future for the global economy.
In a speech ahead of the annual meetings of the International Monetary Fund and the World Bank, Georgieva indicated that the new forecasts of the International Monetary Fund indicate weak growth in the medium term, in addition to escalating trade tensions and high debt levels, which pose major challenges to the global economy.
Georgieva noted that global trade is no longer the driving force for growth as it once was, but it is still growing. “Trade is slowing down, but it has not moved in the opposite direction,” she added.
In her speech, Georgieva stressed that these factors make it necessary to take further measures to boost growth, reduce debt levels, and build a more resilient economy.
Fears of geopolitical influences
Georgieva expressed her concern about the impact of rising prices, especially on the poorest groups, noting that these high prices disproportionately affect those groups.
She also pointed out the impact of the escalation in the conflict in the Middle East on the stability of regional economies and global commodity markets, which further complicates the global economic situation.
In addition, Georgieva highlighted the increase in military spending in many countries, noting that it leads to a reduction in funding available for other priorities, such as providing aid to developing countries.
