IMF Managing Director Georgieva warns of financial risks.
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[Financial Channel/Comprehensive Report] International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Sunday (26th) that in times of high debt levels, there is a rapid transition from a long-term low interest rate environment to higher interest rates , leading to intensified financial risks. It is estimated that the global GDP growth in 2023 will be below 3%.
IMF Managing Director Georgieva attended the "China Development Forum" and said that due to the trauma of economic activities caused by the epidemic, the Russia-Uzbekistan war and monetary tightening, 2023 will be another year full of challenges, and global economic growth will slow down to below 3%. , even if 2024 is better, global growth will still be well below the historical average of 3.8%.
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At the same time, there are signs of increased risks to financial stability.
Georgieva noted that a rapid transition from a prolonged period of low interest rates to higher interest rates during periods of high debt levels inevitably creates vulnerabilities, as has happened recently in the banking sector in some advanced economies.
Market pressures have been relieved somewhat by policymakers acting decisively to address threats to financial stability, she said.
But uncertainty remains high and vigilance is imperative.
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