Live on Bloomberg TV

00:00We just have that breaking news about the US signing an economic trade pact with 13 nations that does give you hope about globalization not being dead. Yes it is a positive sign that we recognize international cooperation is good for everyone. And if we want to retain increasing standards of living we have to work together for it. What does it mean for the next 12 to 18 months. If you look at inflation that could lead to famine it's going to be extremely hard for especially the poorer countries. And then you have their chance of a worldwide recession. How high is that. We are projecting a lower growth than we anticipated last year. Three point six percent versus four point nine. But let's remember three point six percent is the average growth in the previous decade. In other words we are still projecting to be in positive territory. However since we put out our projection in which we downgraded the hundred and forty three countries what are the incremental changes. One tightening of financial conditions to appreciation of the Dollar Tree slowdown in China. All of this is making further downgrades not out of a question. And for some countries there is now an increased risk of recession. But we do not anticipate a global recession. I mean you're actually right especially this dollar rally of course has huge implications for some of the countries across the world. Are you expecting the IMF to have to step in two countries a lot more because of all of these imbalances that we could live through in the next 18 months. Well look we are living in a time of a crisis upon a crisis. Who is most at risk. The countries that were weaker to begin with. And so we are already seeing an increase of demands for for IMF engagement in Lebanon in Egypt in Tunisia in Sri Lanka. And we are looking came to the 2022 as a difficult year for especially developing countries under a high level of debt when your costs of servicing your debt jump up and you are in a very tight fiscal position. Of course this is the time when the IMF has to step up and we will do. Remember we have 700 million dollars still available to buffer the world's record. And how worried are you about Sri Lanka. Your hands tied until there's some kind of a deal on restructuring debt. We are working at the technical level relentlessly. I feel for the people of Sri Lanka. This is a tremendous shock for them. We would like to see progress made. And we are already engaging with Sri Lanka's creditors to appeal for fast action on that restructuring of course to help the country. The country needs to help itself first. So how the politics would shape up would be quite critical. The G-7 I think last week called on China for example to help some of the countries are struggling with debt. Do you think there is a possibility or if not debt forgiveness help especially coming from China on this front. Well we are seeing China more open to engage on debt restructuring because they're not blind. They see that with 60 percent of low income countries in debt distress or near it many of them with big chunks of Chinese loans either they go to the Sri Lanka way or they have a pre-emptive action on that. The E gang the governor of People's Bank of China made it very clear that China wants and will fulfill its commitments under the common framework. Their problem is their multiple institutions in in China that need to be engaged. And the good news is that we see their interest to be more proactive. It is in the interests of the countries but also in China's interests that to prevent the debt shock. And I remember when we haven't met in person at Davos for two years and a half and I remember you were one of my very first interviews where we started talking at the time January 20 20 about Covid. This was we didn't really know what would be hitting us. How concerned are you that nations will go even further apart because of what we're living through. What does Davos today need to do to make the world better. We we ought to recognize that when we are together then we can solve problems. We have seen it with Covid coordinated action by. Central banks and finance authorities put the floor under the world economy. We could have been in the Great Depression we had not because we acted together. And it is critical at the time of increased tensions to identify the problems that we can solve together like that like climate. Marshall Plan for Ukraine. Oh definitely. Definitely. That would be necessary. The Ukrainian economy is devastated and there is visiting the country for a green future transformed future for Ukraine. It would be great for Ukraine but I think it would be also great for for the neighborhood then and the world to have a strong CAC Ukraine.

No schedule data available.

IMF May Need to Trim Economic Forecasts, Georgieva Says

The International Monetary Fund may need to further trim forecasts for economic growth this year but doesn’t expect a global recession, according to Managing Director Kristalina Georgieva. "One: tightening of financial conditions, two: appreciation of the dollar; three: slowdown in China. All of this is making further downgrades not out of the question," Georgieva said in an interview with Bloomberg's Francine Lacqua at the World Economic Forum’s annual meeting in Davos, Switzerland. "But we do not anticipate a global recession." (Source: Bloomberg)

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
More episodes and clips