International Monetary Fund (IMF) Spokesperson Julie Kozacki made an assessment about the latest developments in the global economy at a press conference.
Answering the question about the effects of the US and China’s export controls on semiconductor chips and the critical minerals used in them, Kozack said that they welcomed the talks between US Treasury Secretary Janet Yellen and senior Chinese officials.
Stressing that the United States and other major trading partners should continue to work together to address key issues that risk tearing apart the global trade and investment system, Kozack said, “The recent economic talks between the United States and China have helped to establish common ground in areas vital to global investment and growth and It will help foster cooperation.” used the phrase.
Recalling that they warned about the possible cost of the disintegration of the global trade and investment system to the global gross product, Kozack said, “This will be very harmful for the global economy, especially at a time when we see weak global growth.” he said.
“Inflation remains high”
When asked about the inflation outlook, Kozack reminded that the inflation in the USA remained above the target despite the decrease.
Noting that this situation is not only experienced in the USA, but it is seen globally that especially the fall in energy prices helps to reduce headline inflation, Kozack said, “This decrease in inflation momentum is of course very pleasing, but core inflation remains sticky and inflation still remains a cause for concern. Our policy advice, in the US and elsewhere, is that central banks continue their monetary policy course until a permanent reduction in inflation is achieved.” said.
Regarding the deflation risk in China, Kozack said that the country’s economy slowed down due to weak private investment, slowing exports and declining domestic demand, after the strong performance in the first quarter with the reopening.
Expressing that the general picture for growth in China is a slowing economy, Kozack noted that this is in line with the IMF’s forecasts for April.
Pointing out that “suppressed” inflation is observed in China, Kozack said that in the update of the IMF’s economic outlook report to be published this month, it will revise its Chinese growth forecast.