Georgieva said at an event hosted by the Center for Global Development that the Federal Reserve and other central banks knew how to handle inflation, but it could be a delicate balancing act, and the “indirect impact on emerging markets can add fuel to the divergence fire. “
Along the same lines, yesterday the The World Bank demanded the G20 to ease the debt burden for emerging countries. “The pandemic-induced recession in 2020 left half of low-income countries over-indebted or at high risk of over-indebtedness,” the World Bank said in its latest World Economic Outlook report.
Debt levels in emerging and developing economies have risen at the fastest rate in three decades, according to the report, and while growth in these economies is forecast to strengthen in 2022 to 4.9% and in 2023 to 5, 9%, it is estimated that per capita income will remain below pre-pandemic levels this year among half of this group.
“Greater debt relief is likely to be needed if growth remains subdued and the global community should be ready to provide it equitably but efficiently,” the World Bank report concluded.
Bloomberg released a report this week that predicts four rate hikes this year, the first will be in March – something that has already been confirmed – and the last would be in December. Asked by US senators, Jerome Powell did not rule out this information.
Source From: Ambito
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