World economy remarkably resilient, US poised for soft landing: IMF

News Image

MG News | January 16, 2024 at 02:55 PM GMT+05:00

0:00

January 16, 2023 (MLN): The global economy is set to receive a boost in 2024 from a slightly stronger-than-anticipated performance last year, according to the head of the International Monetary Fund.

While Managing Director Kristalina Georgieva refused to be drawn on how the Washington-based lender will revise its forecasts later in January, she pointed out that the US was “poised for a soft landing” as interest rates start to decline, Bloomberg reported.

“The world economy has proven to be remarkably resilient,” Georgieva said at an event at Bloomberg House in Davos on Tuesday. “2023 comes better than we expected by a small margin. There is some wind coming from 2023 into 2024.”

IMF chief’s sentiment was echoed by her colleague, First Deputy Managing Director Gita Gopinath, who told a Davos panel that the chances of a so-called soft landing have gone up “quite a bit” and that market expectations for rapid interest-rate cuts are “a bit premature.”

Economic realities have shifted since the IMF’s October forecast growth of 2.9% for this year.

While inflation could recede without throwing major economies into a recession, a drawn-out Israel-Hamas war and Houthi attacks in the Red Sea are threatening new price pressures and supply-chain woes.

Turning to China, she urged Xi Jinping’s administration to continue opening up state-owned enterprises, addressing local government-debt issues and sorting out its real estate sector to ensure the economy won’t fall into a low-growth trap.

“China recognizes that unless they move forward with difficult structural reforms they will see growth dipping under 4%,” Georgieva said, adding that she’s seeing a “a very strong determination to stay engaged internationally.”

The world’s second-biggest economy will publish figures for gross domestic product, industrial production, and retail sales at the end of last year on Wednesday that may offer clues on whether it can sustain momentum this year.

Beijing is widely expected to set the 2024 growth target at around 5% again.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 135,688.29
168.20M
1.03%
1388.53
ALLSHR 84,786.91
575.81M
0.92%
768.75
KSE30 41,228.62
63.60M
1.02%
414.33
KMI30 193,073.76
59.87M
0.25%
484.60
KMIALLSHR 56,336.11
262.52M
0.47%
263.87
BKTi 37,852.31
18.62M
2.38%
880.56
OGTi 28,113.08
3.74M
-0.45%
-127.20
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 122,765.00 123,615.00
118,675.00
4235.00
3.57%
BRENT CRUDE 71.18 71.29
70.35
0.82
1.17%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.25
0.26%
ROTTERDAM COAL MONTHLY 108.75 0.00
0.00
0.05
0.05%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 69.30 69.39
68.41
0.85
1.24%
SUGAR #11 WORLD 16.60 16.67
16.54
0.03
0.18%

Chart of the Day


Latest News
July 14, 2025 at 01:06 PM GMT+05:00

OGDC leads State-Owned firms in H1 FY25 profits


July 14, 2025 at 12:24 PM GMT+05:00

NHA tops SOE losses with around Rs2tr accumulated deficit


July 14, 2025 at 12:11 PM GMT+05:00

IHC suspends earlier ruling against TRG Pakistan


July 14, 2025 at 11:32 AM GMT+05:00

PIA shows Rs26bn profit, but actually in loss


July 14, 2025 at 10:46 AM GMT+05:00

Bitcoin overtakes Amazon in global asset rankings



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg