IMF: Uncertainty is the "new normal" for the economy
The managing director of the agency recommends that the EU establish a "single market czar" to drive reforms.
BarcelonaThe managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said this Wednesday that the global economy has performed "better than feared but worse than necessary," in part because the impact of tariffs has been less than expected, although global economic uncertainty is "the new thing."
"For now, the world has avoided a trade war," Georgieva said in Washington, ahead of the start of the fall meetings of the IMF and the World Bank (WB). The bulk of these meetings will take place next week.
At the traditional opening event, the IMF managing director announced that the global economic outlook report, to be released next week, will show "slightly" improved global growth for this year and next, as the world has managed to "overcome multiple shocks."
In his opinion, the tariffs implemented by US President Donald Trump after coming to power in January have had a smaller impact than expected and "for now" the world has not been involved in a trade war. However, he warned: "Uncertainty continues to grow, it is here to stay and will be the new normal," for both developed and developing countries that are demanding better opportunities on the streets.
Petition in the EU
Georgieva also urged the European Union (EU) to move forward with consolidating its single market and financial union: "For the love of God, move forward with a union of the financial system," she stated. In this regard, the managing director gave as an example the difference between American "mega-companies," among which the technological giants stand out, and European business leaders, "who dwarf" in comparison, while recommending that Germany increase fiscal spending and investment in infrastructure.
In fact, the Bulgarian executive has asked the EU to appoint a figure to direct the blog's economic policy. The managing director of the International Monetary Fund (IMF), Bulgarian Kristalina Georgieva, has alerted the European Union to the need to boost the competitiveness of the Old Continent's economy and has proposed to the Twenty-Seven the appointment of a "single market czar" with real authority to drive reforms. "Enough with the lofty rhetoric about increasing competitiveness; you know what needs to be done. It's time to act," she asserted.
Regarding China, Georgieva recommended a cleanup of the real estate market and noted that the real depreciation of its currency is something that goes against its attempt to balance its growth.
