International Monetary Fund Managing Director Kristalina Georgieva has warned that the world needs to be prepared to better handle shocks and “the unthinkable” in a post-COVID-19 world and in light of the ongoing Russia-Ukraine war.
Georgieva made the comments during a World Government Summit panel hosted by CNBC’s Hadley Gamble in Dubai on Feb. 14, where she also referenced the recent earthquakes in Turkey and Syria that have killed more than 36,000 people.
Asked how “difficult” this year is going to be, Georgieva replied that the world economy is still “in a very difficult place and global growth is slowing down in 2023 but it may be a turning point,” pointing to inflation declining in some countries.
“What we are very concerned [about] is one, the unexpected,” Georgieva said. “What COVID and the war taught us is we live in a more shock-prone world. What the earthquake in Turkey and Syria taught us is, to think of the unthinkable.
“We all have to change our mindset to be much more agile and much more oriented towards building resilience at all levels, so we can handle the shocks better,” Georgieva added, noting that resistance comes in the form of ensuring that the very “fabric” of each country and its society is strong.
IMF Plays ‘Stabilizing Role’ in Ukraine
Elsewhere on Tuesday, Georgieva said the IMF has to play a “stabilizing role” in the war in Ukraine, adding that the nation will need around $40 billion to $48 billion for the economy to function this year.
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