Jowhar spoke to the Managing Director of the Worldwide Financial Fund, Kristalina Georgieva, on the World Financial Discussion board in Davos.
A bleak financial outlook overshadows this yr’s occasion within the Swiss Alps. However Georgieva mentioned that though the IMF expects 2023 to be a “tough yr” and that development will fall additional, “we do not anticipate a world recession”. She pointed to the resilience of labor markets and shopper spending, China’s post-Covid reopening, and indicators of inflation pointing downward.
The theme of this yr’s World Financial Discussion board is “Cooperation in a Fragmented World”. When requested about how the world obtained to its present fragmented state, Georgieva famous that “we had been too complacent with globalization to actually admit there have been winners however there have been additionally losers. Not sufficient was accomplished for individuals who had been losers, so public assist is the weak point of the worldwide financial system.” built-in”.
She continued, “COVID and the warfare in Ukraine taught us an vital lesson. Safety of provides issues. Some diversification in provides, steps to convey the availability chain nearer, it is a necessity. However we have now to watch out to not throw away the child with the bathwater. Commerce makes us all higher off.”
Lastly, the IMF defended Davos from criticism that it’s only a gathering of out-of-touch elites, saying that “a number of work will get accomplished” on the occasion and that in-person conferences have a bonus over digital calls. “It is vitally tough, you probably have a really delicate problem, to resolve it over Zoom.”
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