Global Disinflation Continues

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), highlighted in her recent statement that the global disinflation process is persisting. Despite a gradual cooling in the labor market and energy prices, she pointed out the high level of uncertainty surrounding economic policies.

Policy Shifts and Their Implications

Georgieva emphasized the significant policy changes occurring in the United States, including shifts in trade policy, taxation, public spending, immigration, and deregulation. These changes not only impact the U.S. economy but also have global repercussions. She noted that governments worldwide are adjusting their policies in response.

Assessing the Impact

The IMF head explained that the combined impact of these policy changes is complex and currently difficult to assess. However, she anticipates that the global economic landscape will become clearer in the coming months, offering a better understanding of the implications of these policy shifts.