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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 economy.

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IMF Says Indo-Pacific Economic Pact Is a 'Positive Sign'

International Monetary Fund Managing Director Kristalina Georgieva says the 13-nation Indo-Pacific Economic Framework, or IPEF, is a "positive sign" for the global economy. The Biden administration announced that a dozen Indo-Pacific countries will join the US in a sweeping economic initiative designed to counter China’s influence in the region. Georgieva speaks with Bloomberg's Francine Lacqua at the World Economic Forum’s annual meeting in Davos, Switzerland. (Source: Bloomberg)

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