IMF, ECB and global economic leaders On Economy at “Global Economic Outlook” session at Davos Agenda
London, Friday, 21 January 2022
At the "Global Economic Outlook" session at Davos Agenda 2022 today, the IMF, European Central Bank, and global economic leaders debated the economy's future.
The effects of inflation, global economic recovery, and Covid-19 were examined. Listed below are a few quotes. Here's where you can see the entire session.
Christine Lagarde, President, European Central Bank: “In Europe, we are not seeing inflation spiral out of control. We assume energy prices will stabilize from the middle of 2022, bottlenecks will also stabilize in 2022 and gradually, inflation numbers will decline.” “When I look at the labour market, we are not experiencing anything like The Great Resignation, and our employment participation numbers are getting very close to the pre-pandemic level.” “In Europe we are unlikely to face the kind of inflation increases that the US market has faced.” “More recently, we have learnt the lesson of humility – the ECB, IMF, OECD and others all underestimated the recovery, the employment participation and, obviously, inflation.” Kristalina Georgieva, Managing Director, International Monetary Fund (IMF): “The response to the pandemic crisis has been anything but orthodox— in a highly coordinated manner both central banks and finance authorities have prevented the world falling into yet another great depression.” “If I were to offer policy makers a new year’s resolution, it would policy flexibility.” “In low-income countries, 60% are in either debt distress or in danger of debt distress – more than twice as many as in 2015.” Kuroda Haruhiko, Governor, Bank of Japan: “Japan response to the pandemic has been relatively successful, however, the pandemic has had a significant, negative impact on Japan’s economy.” “Unlike US or Europe, we have to continue extremely accommodative, easy monetary policy for the time being. We expect the inflation rate in 2022 and 2023 to be around 1 percent still.” Paulo Guedes, Minister of Economy, Ministry of Economy of Brazil: “Central banks are sleeping at the wheel – inflation will be a real problem very soon for the western world.” “More than 3 million new jobs were created in 2021 and the government has assisted 68 million Brazilians with direct income transfers.” Sri Mulyani Indrawati, Minister of Finance, Ministry of Finance of Indonesia: “We see a strong recovery in the Indonesian economy in 2022, and to build on this we are expecting more than 1% of additional GDP growth from a series of recent reforms.” “Indonesia is the largest economy in the ASEAN region, but it is vulnerable to a dependence on commodities – the emphasis now is on value-added activities.”
(Edited by: The Decision Maker)