‘Robust' US has helped improve global economic outlook, IMF chief says
Strong growth in the United States has helped to lift the outlook for the world economy, but more needs to be done to stem a slide in productivity, the head of the IMF said Thursday.
"Global growth is marginally stronger on account of robust activity in the United States and in many emerging markets economies," International Monetary Fund Managing Director Kristalina Georgieva told reporters in prepared remarks.
The U.S. economy grew by 2.5 percent last year, according to the U.S. Commerce Department, far outstripping most other advanced economies.
"Robust household consumption and business investment, and an easing of supply chain problems helped," Georgieva added. "And inflation is going down, somewhat faster than previously expected."
She spoke just a few days before the IMF-World Bank spring meetings of world financial leaders in Washington, one of two such gatherings hosted each year by the international financial institutions.
Her remarks suggest the IMF now expects the world economy to grow faster than it predicted in January, when it forecast global growth to rise by 3.1 percent in 2024, and 3.2 percent in 2025.
"It is tempting to breathe a sigh of relief. We have avoided a global recession and a period of stagflation — as some had predicted," Georgieva said. "But there are still plenty of things to worry about."
Among the challenges, Georgieva mentioned rising geopolitical tension, which, she said, is increasing the risks of fragmentation of the global economy.
She also highlighted the challenges of growing public debt and a "broad-based slowdown in productivity."
Because of this, the IMF expects growth to remain at just above 3 percent over the medium term — below its historical average.
To help the global economy to heal and fix the productivity challenge, Georgieva laid out a series of steps to bring global inflation and public debt back down to sustainable levels, and also called for steps to eliminate "constraints to economic activity" and boost productivity.
"In short, if there is a market failure that is being addressed — such as accelerating innovation to address the existential threat of climate change — there is a case for government intervention, including through industrial policy," she said.
"If there is no market failure, there is a need for caution," she added.
Related articles
Biden bows to pressure from anti
President Joe Biden decided last week to stop shipping U.S.-made ammunition to Israel amid ongoing w2024-05-07- By Oasis Hu (China Daily) 13:22, December 12, 2023John Lee Ka-chiu (second from right), chief execut2024-05-07
Xinjiang braces for more passenger train suspensions amid extreme weather
(Xinhua) 10:53, February 18, 2024URUMQI, Feb. 17 (Xinhua) -- Due to extreme weather conditions in no2024-05-07Excitement builds in Leverkusen ahead of expected Bundesliga title win
LEVERKUSEN, Germany (AP) — Excitement was building in Leverkusen, Germany on Sunday ahead of local t2024-05-07California reports the first increase in groundwater supplies in 4 years
SACRAMENTO, Calif. (AP) — After massive downpours flooded California’s rivers and packed mountains w2024-05-0739 killed in deadly building fire in Jiangxi
(Ecns.cn) 16:13, January 25, 2024Aerial view of a building fire in Xinyu, east China's Jiangxi Provi2024-05-07
atest comment