Kristalina Georgieva, managing director of the International Monetary Fund, predicted that the year 2023 will be more difficult compared to previous expectations, with darker prospects for several countries.
According to Arabiya Net, Georgieva confirmed her vision that 2023 will be more difficult than we expected, because stubborn inflation has forced central banks to take arbitrary measures, but this rise in interest rates, along with a more expensive dollar, makes growth prospects darker for many countries.
It criticized the opposite trends followed by some countries between the monetary and fiscal policies, and the failure to set clear objectives for the stimulus packages pursued by these countries.
And she continued: We will see countries going through a recession. I don't know how many countries, we have to monitor developments closely, but even countries that will not witness an economic recession, people there will feel as if there is a recession, an epidemic, war and a financial crisis .. This situation creates on one side people who are tired of this situation and closures. . They are now worried about inflationary pressures and on the other hand it creates an imperative for decision makers to act.
Georgieva said my main message today is that monetary tightening must be combined with responsible fiscal policy. Our fiscal policy cannot work against our monetary policy by supporting policies without clear objectives.
And she continued, I use a simple picture...Imagine that monetary policy puts one foot on the brake pedal, while fiscal policy is pressing the accelerator at the same time. This is a very bad recipe.
In fact, she said, we saw a contradiction in Britain between monetary policy and fiscal policy. This is a mature country with strong institutions that are taking measures to contain risks. The Bank of England acted quickly now, there are changes in the stimulus packages being launched, and most importantly the Office of the Budget is now working to come up with valuable and responsible ideas.
