At the World Economic Forum in Davos, Gita Gopinath, deputy managing director of the IMF, signalled that the fund would upgrade its economic forecasts. Instead of predicting a “tougher” 2023, she now expected an “improvement” in the second half of the year and into 2024.
Gopinath warned that 2023 would nevertheless be a “tough year”. With inflation still too high, central banks should “stay the course” with interest rates rising until inflation fell sustainably, she said.
Positive data from Europe and the U.S. in recent weeks have boosted hopes that the world’s economy will avoid a recession this year.
