IMF Chief: Economic Outlook 'Less Bad’ Than Anticipated
Speaking at the closing session of the World Economic Forum in Davos, Kristalina Georgieva, the head of the International Monetary Fund (IMF), stated that prospects for the global economy have picked up in recent months but warned against overoptimism.
Facts
- Speaking at the closing session of the World Economic Forum in Davos, Kristalina Georgieva, the head of the International Monetary Fund (IMF), stated that prospects for the global economy have picked up in recent months but warned against overoptimism.
- She argued that while the global outlook may not be as bad as feared a couple of months ago, this "doesn't quite yet mean good." Global growth for 2023 is being predicted at 2.7%, which Georgieva described as "not fabulous."
- The managing director of the IMF also warned on Friday that interest rate hikes by the leading global economies had "yet to bite" — potentially still increasing unemployment which governments may find hard to respond to adequately.
- Georgieva reaffirmed that the war in Ukraine remained a "tremendous risk" for global economic confidence, especially in Europe, and stressed that the expected economic growth of China may inflame global inflation as other countries begin to tame the issue.
- The World Bank is forecasting that China will grow 4.4% this year, and some private estimates are even higher — with Goldman predicting a 5.2% gain.
- Also at the World Economic Forum, the president of the European Central Bank, Christine Lagarde, described 2022 as a "weird, weird year," urging countries to "stay the course" on monetary policy and to ensure that fiscal policy did not make the job of central bankers harder.
Sources: Guardian, CNBC, CNN, We Forum, Washington Post, and Globe and Mail.
Narratives
- Pro-establishment narrative, as provided by Eurasia Review. While caution and admitting a tough situation faces the global economy reigned supreme, the stance by many at the World Economic Forum was that the future may not be that bad. Recent economic signals have given reason for hope. With luck, growth in the short term may be a reality.
- Establishment-critical narrative, as provided by WSWS. The reality of the World Economic Forum is a devastating socioeconomic system hurtling towards disaster. The ruling elite and their political representatives continue to place the burden of their failing system on the working classes. It is still up to the international community to enact real change in the world — whatever pronouncements of "staying the course" may come from the Forum.
