The International Monetary Fund's (IMF) Managing Director Kristalina Georgieva said on Wednesday that the recent surge in coronavirus infections, driven by the Omicron variant, is expected to add to economic disruptions and to uncertainty. According to Georgieva, the IMF's staff is currently estimating the exact impact of the surge.
She also reiterated that a deepening “divergence" in recovery within countries and across countries remains a concern.
Another concern, in Georgieva's view, is inflation, which is impacting businesses and populations and might cause the tightening of financial conditions. However, she added that inflation is not a universal phenomenon, but is a problem in some countries like the U.S. The IMF's Managing Director said that they expect that the inflationary pressures will recede by the end of 2022 - early 2023, as supply chain disruptions will be resolved.
Georgieva also warned about a fast increase in global debt, which, according to her, is a “very serious problem".