The economic outlook for 2023 has improved, International Monetary Fund Managing Director Kristalina Georgieva said at the World Government Summit in Dubai in February.
It is “less bad, not good,” she said, referring to a previous prediction of a slowdown and lingering inflation. Financial markets, she said, have reason to be optimistic.
The US and EU labor markets have been resilient, and China has reopened following its strict Covid-19 lockdown, both positive factors. Also, “surprisingly good results of central banks tightening up financial conditions and inflation finally trimming down” are hopeful signs, “although the fight is not yet won,” Georgieva said.
When asked if the IMF believed monetary tightening would continue, she said it would extend into this year but not “way into” 2024, according to Reuters.
“The markets have good reason to be more upbeat because what they are finally seeing is the U.S. economy likely to avoid recession... they are also seeing China re-opening and Chinese consumers rushing to spend the money they saved during the pandemic, the lockdown,” she said.
Georgieva praised Gulf Arab oil and gas producers for “relentlessly” pursuing fiscal reforms, including diversifying revenue sources by introducing new taxes. The UAE will host the COP28 climate conference in November, with the head of a state oil firm’s appointment as the country's climate envoy a concern to activists.
“Our focus is on what needs to be done and how we can do it together,” Georgieva said in response to questions about Sultan al-Jaber’s position. “We talk about inclusive approach to fighting the climate crisis. Inclusive is exactly that: all hands-on deck. If we miss, yet again, a chance to deliver on our own promises, we are all cooked.”