Money: A global recession can be avoided if appropriate budgetary policies are implemented, known as Georgieva

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IMC-Economy-Entretian: a global recession can be avoided if appropriate budgetary policies are implemented, known as Georgieva

La directrice générale du Fonds monétaire international, Kristalina Georgieva, s'exprime lors d'une conférence à Riyad, en Arabie saoudite © Reuters/Ahmed Yosri The Director General of the International Monetary Fund, Kristalina Georgieva, speaks at a conference in Riyadh, Saudi Arabia

Riyadh (Reuters) - the general manager of the International Monetary Fund (IMF) said on Monday that it would be Possible to avoid a global recession if the governments implemented budgetary policies articulating with monetary tightening.

Kristalina Georgieva, however, said in an interview with Reuters that some worlds in the world would probably enter a recession next year.

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In a context of tightening monetary policies, budgetary policies must be adapted to combat the cost of living crisis, she said.

"It is necessary that central banks act resolved. Why? Because inflation is tenacious ... It's bad for growth and it is very bad for disadvantaged people. Inflation is a tax on The poorest, "said Kristalina Georgieva.

The Director General of the IMF added that policies aimed at indiscriminately supporting the population by limiting the increase in energy prices and paying compensation went against decisions taken by central banks.

"Monetary policies put a brake where budgetary policies support the accelerator," said Kristalina Georgieva.

Many governments have decided to take action to help their population in the face of the outbreak of food prices and shortages by raising their interest rates, which has repercussions in the financial markets and the economy.

(report aziz el yaakoubi; French version Camille Raynaud)

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