Inflation in the United States could decline in the second quarter of this year, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva.
“This is subject to dealing with supply chain constraints, and what we are seeing are some promising signs that some progress is being made in that regard,” Georgieva said in an interview with CNBC.
U.S. consumer prices rose sharply in December as rental and used car costs maintained their robust gains, culminating in the biggest annual acceleration in inflation in nearly four decades and bolstering expectations of rate hikes. of interest from March.
As for China, Georgieva said policies to support the economy were withdrawn “perhaps a little prematurely.”
He stated that consumption in China has not rebounded as it should to compensate for the disturbances in the economy due to Covid-19.
On the positive side, Georgieva argued that China has “fiscal space” to boost its economy and reach 5 percent growth.
“The People’s Bank of China has taken some steps in that direction and I hope that with the outlook we have, there will be more,” he said.