In her keynote speech at an IMF economics conference, Georgieva said governments, particularly in emerging markets, will need to tighten fiscal policy to keep debt under control and help contain inflation.
The managing director of International Monetary Fund (IMF), Kristalina Georgieva said on Tuesday that the IMF expects a world growth around 3% per year for the next five years, well below historical averages of around 3.8%, which may put pressure on capital flows.
In her keynote address at an IMF economics conference, Georgieva said that governments, especially in emerging markets, they will have to tighten fiscal policy to keep debt in check and help contain inflation.
Georgieva said they will also face further tightening of financial conditions as inflation persists, and “there may be an impact on capital flows.”
imf .jpg
IMF: Argentina seeks to close the new agreement
A team from the Argentine Economy Ministry will travel to the United States on Tuesday to negotiate a relaxation of the agreement with the International Monetary Fund (IMF), a source from the ministry involved in the decision told Reuters.
Argentina intends to modify the objectives agreed with the organization in the framework of a loan for US$44,000 million and receive an advance of fresh money for the rest of 2023, in the midst of a serious financial crisis with high inflation and low reserves of the central bank.
“Yes, a team is traveling,” the source responded when asked by Reuters, without giving further details.
The IMF said through a spokesman on Friday that the current talks are focused on assisting reserve accumulation and improving fiscal stability in the face of the strong impact of the drought.
In the midst of a financial crisis, the grain-producing country stopped collecting some 20,000 million dollars due to the impact of a historic drought on soybean and corn crops, its main source of export income.
Argentines will go to the polls in August to vote in primary elections with a view to the presidential elections in October, where the same Minister of Economy Sergio Massa is a presidential candidate for the ruling Peronism.
Source: Ambito
