‘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
Election 2024: Nikki Haley faces a key decision on whether or not to endorse Trump
COLUMBIA, S.C. (AP) — Nikki Haley is perhaps the highest-profile Republican in the nation who has re2024-05-22Jenna Dewan bares her bump in completely nude snap
Jenna Dewan bared baby bump - with just one month to go until the arrival of her third child. The ac2024-05-22NCAA removes cap on official recruiting visits in basketball to deal with unlimited transfers
The NCAA has approved a waiver that will allow men’s and women’s basketball programs to pay for unli2024-05-22A year after winning in pro debut, Rose Zhang takes Founders Cup lead with career
CLIFTON, N.J. (AP) — When two-time NCAA champion Rose Zhang came out of Stanford and became the firs2024-05-22Vikings seek new deal with Justin Jefferson; star WR absent so far from workouts, AP source says
MINNEAPOLIS (AP) — The Minnesota Vikings have one major piece of roster management remaining on thei2024-05-22Paris Hilton and Nicole Richie are returning to reality TV! Stars are teaming up for a new show
Paris Hilton and Nicole Richie are ready to rule reality TV together once again. The Hilton heiress,2024-05-22
atest comment