The Director General of the International Monetary Fund, Kristalina Georgieva, confirmed that the global economy has succeeded in overcoming the energy shock resulting from tensions with Iran better than expected, attributing this to several factors that included the withdrawal of oil and gas reserves, increased supplies from outside the Gulf, in addition to the boom in investments in artificial intelligence that supports corporate profits and spending growth.
In a press briefing ahead of the G20 finance ministers’ meeting, Georgieva noted that GDP growth is resisting strong obstacles represented by high debt and stubborn inflation, warning at the same time that the energy shock has not completely ended; Any new wave of rise in oil prices may fuel inflation and force central banks to continue monetary tightening.
The Director of the International Monetary Fund stressed the need for governments to rush to develop sustainable financial plans to control the situation and control debts, amid growing global financial pressures and rising bond yields in some major countries.
