FLASH
Shkruar nga Pamfleti
The Managing Director of the International Monetary Fund (IMF) has warned that the war between Israel and Hamas is already affecting the economies of the Middle East and could lead to long-term economic damage.
Speaking to CNN before an audience at the Future Investment Initiative (FII) in Saudi Arabia, Kristalina Georgieva said: “What we see is more shock in what has already been a troubled world. And in a horizon that has had many clouds, another one can deepen."
Georgieva said that the Fund is concerned first with the "tragic loss of life", adding that it is also concerned about the "destruction and reduction of economic activity", such as children not going to school and the impact on neighboring countries that are dependent on tourism.
Georgieva also warned investors to expect interest rates to remain high.
"We've spent the last 20 years living honestly in terms of interest rates. How can you have interest rates in zero or even negative territory and create savings and capacity to operate? In fact it will be normal to have interest rates that are in positive territory – the problem is that it happened too quickly and the jump is too high.”
When challenged that this was what the Fund wanted, Georgieva replied: “We're not thrilled with going from 0 to 5 [percent] so quickly – but we're there. So now we are there, our call to everyone is – buckle up. Make sure you understand that interest rates are here to stay.”
Lini një Përgjigje