BEIJING, March 26 (Reuters) – International Monetary Fund chief Kristalina Georgieva said on Sunday that risks to financial stability had risen and called for continued vigilance, although actions by advanced economies calmed market tensions .
The Managing Director of the IMF reiterated his view that 2023 will be another challenging year, with global growth falling below 3% due to the pandemic, the war in Ukraine and monetary tightening.
Even with an improved outlook for 2024, global growth will remain well below its historical average of 3.8% and the overall outlook remains weak, she said at the China Development Forum.
The IMF, which has predicted global growth of 2.9% this year, is set to issue new forecasts next month.
Georgieva said policymakers in advanced economies had responded decisively to financial stability risks in the wake of bank collapses, but caution was still needed.
“Therefore, we continue to monitor the development closely and are assessing the potential implications for the global economic outlook and global financial stability,” he added. Of debt
She also warned that geo-economic fragmentation could divide the world into rival economic blocs, resulting in “a dangerous division that will leave everyone poorer and less secure.”
Georgieva said China’s strong economic comeback offered some hope for the world economy, with a projected GDP growth of 5.2% in 2023, with China expected to account for nearly a third of global growth in 2023.
The IMF estimates that every 1 percentage point increase in GDP growth in China results in a 0.3 percentage point increase in growth in other Asian economies, she said.
He urged policy makers in China to increase productivity and work to shift the economy away from investment and toward more sustainable consumption-driven growth, with market-levelling efforts to level the playing field between the private sector and state-owned enterprises. oriented reforms.
Georgieva said such reforms could boost real GDP by as much as 2.5% by 2027 and by about 18% by 2037.
He said rebalancing China’s economy would also help Beijing reach its climate goals, as consumption-led growth would reduce energy demand, reduce emissions and ease energy security pressures.
Doing so, she said, could reduce carbon dioxide emissions by 15% over the next 30 years, resulting in a 4.5% drop in global emissions over the same period.
Reporting by Joe Cash and Xu Jing; Writing by Andrea Shalal; Editing by Edwina Gibbs
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Source: www.reuters.com
