The world faces a ‘tepid 20s’ economy: IMF Managing Director

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International Monetary Fund Managing Director Kristalina Georgieva was recently reappointed to a second term. One of the things she will be battling is what she calls the “tepid 20s.” Georgieva argues that the current world economy “has proven to be remarkably resilient,” but also faces “historically slow growth projected over the next years.” “If we don’t take action to generate more impetus for growth, we are going to add with a decade that is disappointing,” she says, resulting in the “tepid 20s.” To stimulate growth, Georgieva thinks countries should adopt “more growth-oriented fiscal policy, monetary policy, and, of course, recognizing that what would make the biggest difference is human capital and the foundation for a digital transformation for a green transformation.”

When it comes to the US, she says the country is currently in a “very privileged situation” thanks to its strong economy, strong dollar, and how attractive it is for financial flows. However, she says the IMF has identified plenty of steps the US can take that would trim the US debt without harming growth prospects. She also notes the US is spending as if it still has a “youthful population that it had some decades ago, that has to be corrected.” She says the country benefits from being a place where younger people from around the world want to live. She also says the US debt is a problem that needs to be addressed, given the high debt servicing costs.

When asked about former President Donald Trump’s idea to put a 60% tariff on Chinese imports, Georgieva demurred. But she did say that one of the reasons why anti-globalism has risen was because globalist policies didn’t benefit everyone, with some people losing their jobs because of it.

Watch the video above to hear what Georgieva had to say about sticky inflation in the US.

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This post was written by Stephanie Mikulich.



This article was originally published by a finance.yahoo.com

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