The year 2025 does not look promising for the global economy, according to Kristalina Georgieva. The Director General of the International Monetary Fund (IMF) expressed his concern for the many “uncertainties” for the coming year, caused especially by the expected political turnaround in the United States, with the imminent inauguration of Donald Trump, and the “headwind” what this could mean for world trade. Concerns expressed on Friday, before the publication of the first update of the report on the world economy of the institution (WEO), which should be published in a week.
According to the head of the IMF, in general, the slowdown in inflation should be confirmed almost everywhere in the world, even if it happens more quickly in advanced economies than emerging countries, with the exception of the China. However, he acknowledged that these forecasts remain fragile, because there is “still a lot of uncertainty, especially regarding economic policies”.
“Unsurprisingly, because of the size and role of the U.S. economy, there is global interest in the policy decisions of the future government regarding tariffs, tax cuts and deregulation,” but this it also concerns other regions, starting with Asia, said Kristalina Georgieva.
Differences
The upcoming report should also confirm the “differences” between the economies, both in terms of growth and the evolution of inflation, as the Director General of the Fund underlined.
“The United States will do even better than we anticipated, unlike the European Union which marks the time a little more, while India should do a little less well. Brazil expected to face higher inflation as China faces deflationary pressure”she said.
She also paid tribute to the Argentine government, which estimates that the effects of the reforms carried out “were profound with the creation of a strong program of macroeconomic stabilization and growth”, which allows the IMF to consider a new loan in the South American country. currently under discussion.
“It is important that the States understand the importance of carrying out the necessary reforms to restore their growth, if we want to avoid a reinforcement of differences”, she insisted.
Lack of education
Tribute to a country that abolished its Ministry of Education to reduce it to a branch of the super-ministry of “Human Capital” did not prevent the IMF from regretting the inadequacy of the efforts made by States, emerging and advanced, in matters of education “which has been neglected during this decade”.
“Take the example of China, they produce all these engineers, but if they want to improve their economy, they need to strengthen the internal demand, that is, health, services, everything that cannot be exported, it takes an adequate workforce.commented a Fund official.
