IMF chief warns of global financial stability risk, urges caution

JNS: International Monetary Fund chief Kristalina Georgieva has warned that threats to international financial stability are rising and that constant vigilance is required.

Global GDP is expected to drop to below three per cent in 2023 due to the lingering impacts of the pandemic, the situation in Ukraine, and monetary tightening, she said.

“Even with a more hopeful view for 2024, she said, global growth would still be much below the historical average of 3.8%, and the overall outlook will remain poor, at the China Development Forum,” she added.

She continued by saying that policymakers in developing economies have taken significant action in the wake of bank failures to address threats to financial stability, but that vigilance was still required.

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