IMF's Georgieva: Economic outlook remains difficult and prone to setbacks

Eren Sengezer FXStreet

Recent data shows slowing momentum in contact-intensive services industries in economies where the pandemic is resurging, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday, as reported by Reuters.

Additional takeaways

"Recent data confirms continuing global recovery from the COVID-19 crisis but economic outlook remains difficult and prone to setbacks."

Seeing signs that global economic recovery may be losing momentum; poverty, inequality worsening."

"Delays in distribution of vaccines and treatments could limit growth, send debt levels higher."

"Elevated asset valuations show disconnect of financial markets from the real economy, with inherent risks to financial stability."

"IMF has provided over $100 million in new financing to 82 countries during the crisis, aims to do more."

Market reaction

These remarks don't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Futures were down 0.15% on the day at 3,559.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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