Economic Buzz: Risks to global growth outlook remain high; Central banks need to focus on their price stability mandate, says IMF chief
Mumbai, Sept. 2 -- IMF chief Kristalina Georgieva at the conclusion of the G20 Finance Ministers and central bank governors meeting noted that the risks to global growth outlook remain high. Firstly, she mentioned that the energy shock is not over. The Strait of Hormuz remains largely closed, strategic oil and gas reserves will need restocking, AI drives up energy demand, and in the northern hemisphere winter is coming. Secondly, public debt-at almost 100 percent of GDP worldwide-now exceeds its post-World War II highs and is set to climb further. Looking back, the debt trajectory resembles a staircase: big vertical steps when shocks occur, little or no reduction afterward. Thirdly she noted that the disinflation process has stalled in many...
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