Gita Gopinath, Economic Counselor and Director of the Research Department at the International Monetary Fund (IMF). file | Photo Credit: Reuters
Describing the International Monetary Fund’s (IMF) outlook for 2023, Gita Gopinath, IMF Deputy Managing Director, said, “We have had a difficult year ahead, but there are signs of resilience.”
She tweeted a video from Davos, where she is attending the World Economic Forum Annual Meeting 2023. Russia-Ukraine WarAs well as covid-19 pandemic, will make 2023 a difficult year, he said in the video message. However, a strong labor market in many countries, including the US, and slowing consumption in many parts of the world indicated resilience.
“A tough year because we have high levels of inflation around the world, even though it has been coming down in the last few months. Tough year because we still have the war and its ramifications for the rest of the world,” Ms. Gopinath said. Told.
“There are signs of resilience with strong labor markets in many countries, including the US and Europe. We are seeing increasing consumption in many parts of the world. We expect global growth to come down this year, but to improve in the second half of this year and till 2024.
‘Inflation may be low, prices are high’
Speaking at a panel discussion during the World Economic Forum’s Annual Meeting 2023, Ms. Gopinath said, “We believe that, in terms of headline inflation for the global economy, we think it peaked in 2022.”
However, she cautioned, “Even if inflation comes down, prices are high because we don’t have deflation, we have low levels of inflation. Prices have gone up. How much that has affected households and consumption varies.” -Different in different countries.
Finally, the IMF’s Ms. Gopinath cautioned that any meaningful move to reduce inflation would mean rising unemployment.
“We are at a record low unemployment rate in the US and in the euro area. When you tighten interest rates, what we know about our monetary policy is for the unemployment rate to go up. You bring down inflation.
(With PTI inputs)