IMF Director: The world is waiting for a difficult stage if oil prices continue to rise

She said the General Manager For the International Monetary Fund Kristalina Georgieva Countries must prepare for a difficult stage if Oil prices are high due to War in the Middle East.
Georgieva said in a press conference held yesterday, Wednesday: We must prepare for a difficult stage if the war continues and oil prices remain high, and all countries are concerned, even if the impact of the shock is not the same among them.
Georgieva saw during the annual meetings of the International Monetary Fund and the World Bank in Washington with the participation of delegations from the majority of countries in the world, that countries must take the necessary measures to reduce the activities that consume the most energy, and she added: They should do that from now, no To wait several weeks.

Avoid large expenditures

The Director-General of the Fund called on countries to avoid making large expenditures at a time when global debt is at its highest level since World War II.
A report stated "Physical Monitor" Regarding the budget policies published by the International Monetary Fund on Wednesday, the percentage of global debt reached 94% of global gross domestic product during the past year, and may reach 100% by 2029 if no efforts are made.
Georgieva criticized some of the measures that a number of countries may adopt, including controls on exports or poorly designed tax cuts.

She added: "The intentions are good, but protecting citizens through this type of measure will only prolong the difficulties associated with rising prices"

Key interest rate decisions

Kristalina Georgieva believed that central banks should at the same time be cautious and monitor how the situation develops before making any decisions on key interest rates, especially if inflation expectations remain valid.
But the priority at the present time remains the financial situation of countries, while the International Monetary Fund already had about 40 active programs before the outbreak of war.
The Fund has so far received about 12 requests for new assistance programs, Some of them are from sub-Saharan Africa, Georgieva said.
She said: These countries need our attention, and they are an important focus of our discussions this week about how to best provide assistance to them in a world full of recurring shocks and uncertainty.

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