The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned today of an “increased risk to financial stability” after the volatility experienced by the markets and especially banks, in recent weeks.
In a speech that she has given in the framework of the China Development Fund, the director of the IMF has said that the “uncertainties are exceptionally high” and that we must be “vigilant”. In fact, according to Georgieva, the “decisive” actions taken by the authorities to deal with market volatility – such as the 0.5% rise in interest rates by the European Central Bank – have helped to reduce the turbulence.” until a certain point”.
“We are closely following developments and assessing the possible implications for global economic forecasts and global financial stability,” he admitted.
Georgieva has assured that at a time of high indebtedness “the rapid transition from a prolonged period of much higher interest rates – to curb inflation – inevitably generates stress and vulnerabilities”, as demonstrated by the collapse of the US entity Silicon Valley Bank and the historic company Credit Suisse, which has been taken over by its rival UBS.
The managing director of the IMF has also referred to the risk of geoeconomic fragmentation, in a world with “rival blocs”. In her opinion, that would be dangerous because “it would make the whole world poorer and less secure.”
During her speech, Georgieva highlighted the strength of the Chinese economy, which is expected to grow by 5.2% this year, according to IMF estimates, which calculates that this country will contribute a third of the growth of the world economy. The director has made a call to the country to rebalance its economy towards the promotion of consumption.
