The head of the IMF warned of an imminent “boom” amid the vulnerability of the global economy

The head of the International Monetary Fund (IMF), Kristalina Gergieva, said that against the background of attempts by the central banks of the world’s countries to contain inflation, the vulnerability of the global economy is increasing. According to her, the fragility of the system threatens financial instability and economic slowdown.

“It just can’t be that interest rates have risen this much after being low for so long and there would be no vulnerabilities. Something’s got to make a boom.” said Kristalina Georgieva to journalists.

The head of the IMF added that the deterioration of relations between the West and other global players could lead to losses in trade from $200 billion to $7 trillion (0.2-7% of world GDP). However, she ruled out a global financial crisis, despite problems in the banking sector in the US and Switzerland. Now, according to her, “the financial system, both banking and non-banking, is much cleaner.”

A chapter in the April 6 World Economic Outlook report states that geopolitical tensions could cost the global economy 1% of GDP over the next five years and 2% of GDP over the long term in lost growth. The IMF called on countries to act in a consolidated manner so as not to increase the ongoing fragmentation of the global economy.

More details – in the material “Kommersant” “Geopolitics beats geoeconomics”.

Lusine Balasyan