(Seoul = News 1) Reporter Jung Yun-mi = International Monetary Fund (IMF) President Kristalina Georgieva diagnosed on the 26th (local time) that this year will be a difficult year as global financial stability grows.
According to Bloomberg and Jiji News, Governor Georgieva attended the China Development High-Level Forum held in Beijing, the Chinese capital, on the same day and said that although market tensions following the bankruptcy of two small and medium-sized US banks have eased , “certainly the threat to financial stability is increasing.”
He also predicted that this year’s global economic growth rate would be a difficult year, falling below 3% due to the effects of the Corona 19 pandemic, the war in Ukraine, and tight monetary policy.
He analyzed that the “rapid transition” to higher interest rates to contain inflation in a low rate environment was “creating pressure and vulnerability (for the financial sector).”
“We continue to monitor the situation closely and assess the potential impact on the global economic outlook and financial stability,” he said.
He also predicted that China’s gross domestic product (GDP) would grow at 5.2 percent this year, with China accounting for about a third of this year’s economic growth.
He said China’s strong economic recovery is providing a welcome boost to the global economy. He urged the Chinese authorities to undertake market-oriented reforms with equal competition between the private sector and state-owned enterprises.
