The managing director of the International Monetary Fund, Kristalina Georgieva, called on Sunday to “remain vigilant” in the face of “uncertainty” in the financial sector, which remains “high”. “It is clear that the risks to financial stability have increased,” Kristalina Georgieva told a forum on China’s development, an event organized in Beijing by the Chinese government.

The bankruptcy of the Californian bank Silicon Valley Bank (SVB) on March 10 generated a wave of concern in the banking sector in the United States and Europe, which included among its milestones the hasty sale of the Swiss entity Credit Suisse to its compatriot UBS a few days ago. week, or the losses on the stock market of Deutsche Bank.

The purchase of Credit Suisse by UBS, led by the Swiss authorities, like the recent measures by central banks to improve access to liquidity, prevented panic but failed to restore calm to financial markets.

“Political leaders have taken decisive measures in response to the risks that weigh on financial stability,” said the managing director of the IMF in her speech collected by agencies. “These measures have somewhat eased the tensions in the markets, but uncertainty remains high, which underscores the need to remain vigilant,” Georgieva argued.

In January, the IMF estimated that global growth would slow from an expected 3.4% last year to 2.9% in 2023 and a slightly higher 3.1% in 2024. “Even with better prospects for 2024, the global growth will remain below the average of the last decade, located at 3.8%”, highlighted Georgieva.

The fund’s director also echoed warnings voiced by other speakers at the conference about the dangers of the world splintering into economic blocs. In her opinion, this would be “a dangerous division that will leave everyone poorer and less secure.” The most positive development in the global economy this year was the expected strong rebound in China after it relaxed its strict zero-Covid policy. The IMF forecasts growth of 5.2% for the country this year.

Follow all the information of Five days in Facebook, Twitter and Linkedinor in our newsletter Five Day Agenda

The managing director of the International Monetary Fund, Kristalina Georgieva, called on Sunday to “remain vigilant” in the face of “uncertainty” in the financial sector, which remains “high”. “It is clear that the risks to financial stability have increased,” Kristalina Georgieva told a forum on China’s development, an event organized in Beijing by the Chinese government.

The bankruptcy of the Californian bank Silicon Valley Bank (SVB) on March 10 generated a wave of concern in the banking sector in the United States and Europe, which included among its milestones the hasty sale of the Swiss entity Credit Suisse to its compatriot UBS a few days ago. week, or the losses on the stock market of Deutsche Bank.

The purchase of Credit Suisse by UBS, led by the Swiss authorities, like the recent measures by central banks to improve access to liquidity, prevented panic but failed to restore calm to financial markets.

“Political leaders have taken decisive measures in response to the risks that weigh on financial stability,” said the managing director of the IMF in her speech collected by agencies. “These measures have somewhat eased the tensions in the markets, but uncertainty remains high, which underscores the need to remain vigilant,” Georgieva argued.

In January, the IMF estimated that global growth would slow from an expected 3.4% last year to 2.9% in 2023 and a slightly higher 3.1% in 2024. “Even with better prospects for 2024, the global growth will remain below the average of the last decade, located at 3.8%”, highlighted Georgieva.

The fund’s director also echoed warnings voiced by other speakers at the conference about the dangers of the world splintering into economic blocs. In her opinion, this would be “a dangerous division that will leave everyone poorer and less secure.” The most positive development in the global economy this year was the expected strong rebound in China after it relaxed its strict zero-Covid policy. The IMF forecasts growth of 5.2% for the country this year.

Follow all the information of Five days in Facebook, Twitter and Linkedinor in our newsletter Five Day Agenda