The IMF has revised upwards its forecasts for the United States while lowering those for Europe. Managing director Kristalina Georgieva points out that there are three factors that are making the difference: innovation, immigration, and energy.
The debate over when the US Federal Reserve will start lowering interest rates, given the strength of the US economy, is dominating the IMF's spring meetings. Georgieva stressed that the global economy has proven surprisingly resilient in the face of rising interest rates and the geopolitical instability unleashed by the wars in Ukraine and Gaza. "Despite these multiple shocks and restrictive financial conditions, growth remains firmly in positive territory," the IMF director said. "There is a lot to worry about," she added, noting that inflation has fallen, but it has not disappeared in the U.S., while in Europe, there is still "work to be done to unleash innovation.'