IMF chief, Kristalina Georgieva, speaks in Davos
- Uncertainty is the major downside risk for global economy
- Wants to see governments stepping up action
- The world is more shock-prone as it is interconnected currently
- We are in a better place at the start of 2020 than in 2019
- Sees signs of trade, industrial slowdown bottoming out
- Consensus is that global rates will be low for longer
- Fed, PBOC have policy space
- Other countries need to look at fiscal tools more closely
Low growth, low rates. That is the new landscape that the world will have to deal with. And with central banks still injecting so much stimulus and being so cautious, we shouldn't expect to see a crisis like the one in 2008-09 materialise.
However, any chance of major economies and the world returning back to what is perceived to be "normal" is probably not going to happen either.
