The positive factors are being the resistance of the labor markets of the United States and the European Union, the reopening of China and the “surprisingly good results from central banks tightening financial conditions and inflation finally slowing, although the fight is not yet won“, he added.
Asked if there would be more doses of monetary tightening, Georgieva said the Fund expects it to continue this year, but does not expect it to continue “well into” 2024.
“The markets have good reason to be more optimistic, because what they are seeing is that the US economy will probably avoid recession (…) They are also seeing China reopening and Chinese consumers rushing to spend the money they saved during the pandemic and lockdown,” he said.
The director of the IMF spoke in an interview on the stage of the annual summit organized by Dubai, in the United Arab Emirates (UAE).
Georgieva praised oil and gas producers in the Gulf Arab countries for “relentlessly” carrying out tax reforms, such as diversifying revenue sources by introducing new taxes. The UAE will host the COP28 climate conference in November.
Source: Ambito
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