June 19, 2023 -In an interview with Euronews, the IMF’s Managing Director says that more stringent measures could become the norm given the current economic situation in Europe.
The head of the International Monetary Fund, Kristalina Georgieva, has warned that the eurozone is looking at a prolonged period of high inflation.
In an interview with Euronews, the IMF Managing director says while Europe has shown remarkable resilience in the aftermath of Russia’s invasion of Ukraine and the largest period of trade shock in several decades, economic activity has weakened and inflation “although gradually declining” remains elevated.
“The most important thing for Europe is to get a handle on inflation,” Georgieva says. “Why? Because inflation is bad for growth, and it is a tax on the poor. When we look into the medium long term, critical for Europe is to spur more innovation and create more dynamism.”