The chairman of the International Financial Savings Fund (IMF) said Monday that the financial market has good reason to be more optimistic, referring to the notion that the U.S. economy is it is possible to avoid the slippage and reopening of China rather than pandemic control.
IMF Affairs Director Kristalina Georgieva, while speaking at the World Empire Summit, characterized the IMF's prospects for 2023 as “not bad, not good” considering the IMF had forecast slow economic growth this year and inflation remaining a concern.
A positive factor is the U.S. labor market. and a resilient EU, China's reopening and the “surprise result of central bank action tightening financial conditions and finally reducing inflation”, he added.
Asked whether there could be more monetary tightening, Georgieva said the IMF still expected monetary tightening to come this year but did not indicate it would continue "towards" 2024.
“The market has a strong reason to be better as what they are seeing ultimately is the U.S. economy. likely could have avoided the derailment. They are also seeing the Chinese economy reopening and Chinese users spending the money they saved during the pandemic.” he said.
The IMF chief spoke in a boisterous meeting on stage at the annual summit hosted by Dubai in the United Arab Emirates (UAE). Georgieva commended Gulf Arab oil and gas producers for “relentlessly” pursuing fiscal reforms, including diversifying sources of revenue by introducing new taxes.
The UAE will host the COP28 climate trial in November.
