International Monetary Fund (IMF) chief Kristalina Georgieva stated on Thursday that the stronger demand for services and attempts to lower inflation have raised the possibility that the global economy will avoid recession, but fiscal and financial risks remain.

Key quotes

"The world economy has shown remarkable resilience, and the first half of 2023 has brought some good news, largely because of stronger-than-expected demand for services and tangible progress in the fight against inflation,"

"This increases the chances for a soft landing for the global economy. But we can’t let our guard down.”

“Global growth is well below 3.8 pre-pandemic average”

“Fighting inflation remains top priority”

“Warns that inflation will remain above target for some countries until 2025”

“Medium-term growth prospects have weakened further.”

“Winning fight against inflation requires interest rates to remain higher for longer.”

“US, India are bright spots, but most advanced economies are slowing and China's output below expectations.”

“Estimates cumulative global output loss from successive shocks since 2020 amounts to $3.7 trillion.”

“Sudden resurgence of inflation could lead to sharp tightening of financial conditions.”

“Warns of significant risks on fiscal front in many countries, higher interest rates have increased debt burdens