IMF's Geeta Gopinath said that 2023 is challenging for the global economy, inflation is the biggest problem right now

 

IMF Deputy Managing Director Geeta Gopinath said that 2023 is going to be challenging for the global economy. Inflation is the biggest challenge at this time.

IMF Gita Gopinath: Gita Gopinath, deputy managing director of the International Monetary Fund, said that the coming times are going to be difficult for the global economy. However, there are signs of improvement in this. He said that inflation is still high, due to which there are different challenges before the global economy. Speaking on the stage of the World Economic Forum, he said that we have such a situation of inflation which we have never seen.

2023 is going to be challenging

Gopinath said that the situation is bad because of Russia's attack on Ukraine. Apart from this, 2023 is challenging due to the effect of inflation and corona. He said that inflation is coming down, but is still high. Due to this, 'trouble' is being seen between monetary policy and fiscal policy.

inflation is the most important

He said that the most important is inflation. Due to this, the effect of debt has been seen and its real value has come down. The Deputy Managing Director of the IMF said, “If you look at public debt globally in 2020, it went up to about 99 percent of GDP (gross domestic product). Now it has come down to 91 percent of GDP. The reason for this is revival and the second is inflation. Inflation has reduced the real value of debt. He said that this is a difficult situation and countries have to see what is right. Fiscal policy has a role to play.

Most important to control inflation

Gopinath said, “Stability in fiscal policy is necessary to bring inflation under control. That means at least it didn't grow. The second thing to keep in mind with fiscal policy is that you have to protect the most vulnerable sections of society and this will need to be done time and again, given the food and energy crisis. You need to provide the things that are necessary for the houses. "He said," At the level of fiscal policy, the framework should be strong and things should be clear about debt reduction.