IMF: Global inflation returning to target levels

The International Monetary Fund (IMF) believes that global inflation rates are gradually returning to target levels and the global economy has a chance to make a soft landing, avoiding a recession, IMF Managing Director Kristalina Georgieva said in an online interview with The Washington Post, Report informs.

“We are now into ’24, poised for soft lending; in other words, inflation gradually going back to target without triggering a recession. And that is very good news,” she said.

“There are geopolitical factors that continue to impact projections for the world economy, and already geopolitical tensions have led to some fragmentation that is making the growth prospects of the world bleaker than they would have been otherwise.”

Meanwhile, the head of the US Federal Reserve System Jerome Powell admitted on January 31 that the American authorities have not yet managed to achieve a soft landing for the country’s economy, which implies stabilization with a decrease in inflation, the absence of a significant increase in unemployment and recession.