WASHINGTON, April 16. /TASS/. The global economy has been able to remain "remarkably resilient" despite many negative forecasts for its development, Chief Economist of the International Monetary Fund (IMF), Pierre-Olivier Gourinchas, said presenting the fund's latest report on global economic prospects in Washington.
"The global economy remains remarkably resilient, with growth holding steady as inflation returns to target. Yet, despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops. Moreover, the inflation surge—despite its severity and the associated cost-of living crisis—did not trigger uncontrolled wage-price spirals. Instead, almost as quickly as global inflation went up, it has been coming down," he said.
As the chief economist noted, most indicators point at the likelihood of so-called soft landing, which assumes stabilization with a decrease in inflation, the absence of a significant increase in unemployment and recession.
However, as the fund’s chief economist pointed out, despite encouraging trends, the world has not yet overcome inflation. In addition to that, the global picture may hide sharp differences between countries, he noted.
Gourinchas mentioned the widening gap between many low-income countries and the rest of the world as a worrying development. However, amid inflation decline, real interest rates have risen and public debt dynamics have become less favorable, particularly for emerging market countries with high debt.