IMF Expects Better Growth for Global Economy in 2024

International Monetary Fund (IMF) Director Kristalina Georgieva expected better growth for the global economy in 2024 compared to last year.

She indicated that the United States economy is heading for a soft landing, or what is known as “soft landing,” coinciding with the start of the expected interest rate reduction by the Federal Reserve.

Georgivia stressed that the global economy has proven remarkably resilient, and that the year 2023 was slightly better than expected, but she indicated that the current geopolitical tensions may threaten new pressures on prices and troubles in supply chains in 2024.

“The global economy has proven remarkably resilient,” Georgieva said at an event held at Bloomberg House in Davos on Tuesday. “2023 is slightly better than we expected. There are some winds coming from 2023 to 2024,” according to Bloomberg.

The sentiments of the IMF chief were echoed by her colleague, Senior Deputy Managing Director Gita Gopinath, who told the Davos panel that the chances of a so-called soft landing had risen "substantially" and that market expectations of rapid interest rate cuts were "somewhat premature."

Economic realities have changed since the International Monetary Fund in October forecast 2.9% growth for the year. While inflation may ease without pushing major economies into recession, the long-running war between Israel and Hamas and Houthi attacks in the Red Sea threaten to put new pressure on prices and supply chain troubles.

Georgieva spoke hours after Donald Trump won Iowa as he sought the Republican nomination. Asked whether she agreed with her predecessor at the IMF, Christine Lagarde, that another Trump presidency could pose a threat, Georgieva said it was up to the Americans to choose their leader - and the Fund would focus on the policies the eventual winner would implement.

Turning to China, the Xi Jinping administration has urged the continued opening of state-owned enterprises, addressing local government debt issues and regulating the real estate sector to ensure the economy does not fall into a low-growth trap.

“China realizes that unless it moves forward with difficult structural reforms, it will see growth fall below 4%,” Georgieva said, adding that she sees “a very strong determination to continue participating at the international level.”

In turn, Chinese Premier Li Qiang said in Davos on Tuesday - one day before official figures for GDP and industry - that the world's second-largest economy grew by about 5.2% in 2023, exceeding the government's official growth target for this year without relying on " Huge stimulus." Production and retail sales are due.

For 2024, Beijing is widely expected to set the growth target at around 5% again.

Georgieva is scheduled to meet Argentine President Javier Miley on Wednesday in Davos. When asked about the results under his new government, she said: “So far, very good.

“What this administration is doing is very aggressively addressing some of the shortcomings that we all see,” Georgieva said.

The International Monetary Fund gave Miley's economic plans a key vote of confidence on January 10, agreeing to review the country's $44 billion program that would likely open the door to a larger-than-expected $4.7 billion loan for the South American country, pending approval. Board of Directors.

Georgieva said the IMF “cares deeply that Argentina protects its most vulnerable people as it moves forward with very bold reforms.”