IMF head: Dire economic forecasts may be too optimistic [LINK]
How do you co-ordinate economic policy across the globe, when an invisible enemy that behaves in unknown ways systematically erodes the very way economies function?
That is the tricky challenge facing the relatively new managing director of the International Monetary Fund, Kristalina Georgieva, who sat down with me to discuss this in her first British broadcast interview.
The IMF is now a fire fighting service battling multiple infernos, almost everywhere. This discussion was meant to take place face to face at the IMF’s annual meetings in Washington DC. But for obvious reasons, those meetings became virtual, as did my interview with her.
First up, a refreshing admission. Just three months ago, the IMF’s January economic forecast update projected that the base unit of living standards – the per person size of the economy or GDP per capita – would be going up in 160 countries. That would have meant 82% of nations becoming better off in 2020.