Kristalina Georgieva, Managing Director of the International Monetary Fund, said that the global economic system is in a weak position because of the world’s central banks’ attempts to fight inflation.
Among the consequences, Georgieva mentioned primarily financial instability and slowing economic growth, but at the same time stressed that the world is not currently threatened by a repeat of the financial crisis that occurred in 2008.
She added, “Currently, the financial system, banking and non-banking, is much cleaner, but this does not mean that weaknesses do not exist. We have warned over the past year that interest rates should not be allowed to rise too much after they were low for a long time.”
Last Thursday, the Director-General announced that global growth would remain at 3 per cent over the next five years, the lowest medium-term projection since 1990.
This article was originally published by RT.