IMF Head: Global Growth Prospects Rising But Dangers Remain

WASHINGTON — The head of the 190-nation International Monetary Fund says prospects for global growth have brightened since January, helped by a $1.9 trillion U.S. rescue package. But she warns that uneven progress in fighting the pandemic could jeopardize the economic gains.

IMF Managing Director Kristalina Georgieva said Tuesday that when the IMF releases its updated economic forecast next week, it will show the global economy growing at a faster pace than the 5.5% gain it projected at the start of the year.

In remarks hosted by the Council on Foreign Relations, she said that the $1.9 trillion support package that President Joe Biden signed into law on March 11 along with rising confidence from increased vaccinations in many advanced economies were primary reasons for the forecast upgrade.

Georgieva said that governments around the globe had taken extraordinary actions over the past year including providing a combined $16 trillion in support and a massive injection of liquidity into the financial sector by the world's central banks. Without this prompt response, Georgieva said the last year's downturn would have been three times worse.

But she said economic prospects are "diverging dangerously" with the global economy now in a multi-speed recovery increasingly powered by two engines — the United States and China, the world's two biggest economies, while other countries fall behind.

Georgieva said the world faced "extremely high uncertainty" with so much depending on the path of the pandemic with new strains of the virus now holding back growth prospects, especially in Europe and Latin America.

Private economists are forecasting that the U.S. economy could grow by 6% to 7% this year, which would be the best performance since 1984. But Georgieva said strong growth in the United States could trigger a rapid rise in interest which could trigger significant capital outflows from emerging market and developing economies.

She said that emerging market and low-income countries already have limited firepower to fight the crisis and are highly exposed to the declines in tourism and other sectors hit hard by the pandemic.

She said how to best address the pandemic would be the key agenda item when the IMF and its sister organization hold their virtual spring meetings next week. Those discussions will also include a meeting of the finance ministers of the Group of 20 major industrial countries.

She said that the IMF estimates that faster progress in ending the health crisis cold add almost $9 trillion to global GDP by 2025.

"Given diverging recoveries, it is prudent to keep a close eye on financial risk, including stretched asset valuations," she said. "And major central banks have to carefully communicate their policy plans to prevent excess financial volatility at home and abroad."


HOUSTON  — A federal judge on Friday ordered the liquidation of conspiracy theorist Alex Jones ′ personal assets but dismissed his company’s separate bankruptcy case, leaving the immediate future of his Infowars media platform uncertain as he owes $1.

Top Stories


A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.


1 of 2 Abducted Louisiana Children is Found Dead in Mississippi after Their Mother is Killed

JACKSON, Miss. (AP) — A Louisiana woman was found dead in her home Thursday, and her two young daughters were abducted and found hours later in Mississippi — one dead and the other alive, police said.

Today, I will talk about a food that I associate with summer, shellfish, as that is their ‘season’ in the Mediterranean.

THRU AUGUST 4 STOCKBRIDGE, MA – ‘Microcosms: A Solo Exhibition of Selected Works’ by Peter D.

LONDON - A second generation Greek-Cypriot in London, Georgina Hayden has used her heritage to write cookbooks showing off recipes from her homeland and her latest, Greekish, offers everything from Baklava cheesecake to Burnt Butter Eggs and Goat’s Cheese.

The two biggest wastes of time this election year are reminders that Joe Biden’s cognitive skills are in freefall and that Donald Trump’s a convicted felon.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.