Georgieva made assessments on the global economy at a press conference organized as part of the IMF-World Bank Spring Meetings. Stating that there has been a lot of "turbulence" in the world economy in recent years, Georgieva said that growth has remained in positive territory despite multiple shocks and tight fiscal conditions. Pointing out that there is still a lot to worry about, Georgieva said, "Inflation has fallen, but it has not gone away."
IMMIGRANT LABOR FORCE PROVIDES COMPETITIVE ADVANTAGE IN USA
Upon a question on the reasons for the slowdown in productivity, Georgieva said that there are many reasons for the slowdown in productivity and growth, but the slowdown in productivity is not the only reason for the slowdown in growth.
Regarding the US economic performance being better than Europe, Georgieva explained how easy it is in the US for innovation to turn into business development and then grow.
"We know that there is still work to be done to unleash the power of innovation in Europe," Georgieva said.
Pointing out that the US also benefits from the labor force of immigrants, Georgieva emphasized that although this poses a problem in domestic politics and not every person who crosses the border contributes economically, the labor supply gives the US a competitive advantage.
Georgieva also stated that there are more favorable conditions in terms of energy prices in the US and that energy prices are a very serious factor for Europe.
ADVICE TO CHINA TO INCREASE DOMESTIC DEMAND
Answering a question on the Chinese economy, Georgieva said that China needs to determine its growth strategies for the future.
Stating that the country has benefited from a series of policies for export-led growth in the last 10 years, Georgieva noted that it is time for China to look to domestic resources for growth.
Georgieva pointed out that there are three important opportunities for China, the first of which is to shift the economy more towards domestic consumption.
Explaining that the reforms in China have served the country well and continue to be needed, Georgieva stated that the problems in the real estate sector in the country should also be solved, which will help restore consumer confidence.
"UKRAINE NEEDS 42 BILLION DOLLARS OF BUDGET SUPPORT THIS YEAR"
Responding to a question on the current economic and budgetary risks in Ukraine, Georgieva emphasized that war is first and foremost a human tragedy and that it must end for the sake of the world economy.
Georgieva stated that the global support for Ukraine is solid and that the country needs 42 billion dollars of budget support this year.
"MORE THAN 80 PERCENT OF GAZA'S ECONOMY DESTROYED"
Referring to the effects of the war in Gaza, Georgieva noted that as a result of the uncertainty in the region, they have lowered the growth forecast for the Middle East economy.
Georgieva said, "More than 80 percent of Gaza's economy has been destroyed, while the West Bank has also been severely affected."
IMF President Georgieva stated that the war also affected countries such as Lebanon.
