International monetary funds Chief Economist Pierre Olivier gourinchas. The imf and the world bank are having their annual meeting in marrakech and later today, Finance Ministers from the 620 and Central Bank Governors will be meeting to discuss the health of the Global Economy. According to the imf, Global Growth remains dampened by Supply Chain Disruptions linked to the covid 19 pandemic and russias war in ukraine, persistently high inflation, and spiralling borrowing costs. Heres our economics editor faisal islam. The message from the imf for the 190 Finance Ministers and central governor business in marrakesh is that the World Economy they hope had turned a corner after three years of rolling your clinical crisis. Well, it is limping forward rather than sprinting forward now with geopolitical crisis. Slowdowns in very specific countries like china that they had not expected. There is an additional worry about this new higher for longer Interest Rate world that might affect the bank
More than 4,000 are injured. Hamas says itll kill hostages if air strikes are launched without warning. It refuses to negotiate their release. In all honesty, i try not to imagine, because its too difficult, and these are the times where i break. And i dont want to break right now, because i want to keep pushing for the release of my mum and brother. More on those developments in a few minutes. Time for a look at the Business News now with ben thompson. Lets start with the latest Market Reaction to the events unfolding in israel and gaza. Markets have been on edge as they absorb the many potential ramifications from the conflict. Israels central bank moved to calm markets and stabilise their currency by saying it would sell up to 30 billion of foreign currency. The price of oil has been in focus jumping up by 5 on monday at one point but has since stabilised. But the big mover has really been us bonds with treasury yields falling the most since march as the conflict pushed investors to
About the Economic Uncertainty that will come from the conflict between israel and hamas as the death toll continues to rise. The bbc s economics editor faisal islam sat down Pierre Olivier gourinchas and asked if the Global Economy is heading in the right direction. Well, things are going in the right direction. What were seeing is despite these large shocks that you describe, the World Economy is still standing. No global recession, no massive slowdown that would put us into, you know, huge unemployment rates. We havent seen that. Weve seen a surge in inflation. But inflation is sort of coming down now, both Headline Inflation and core inflation. So thats the good news. Things are improving. The Global Economy has been resilient. At the same time, the Growth Numbers we have around 3 for this year, 2. 9 for next year this is way below historical average. So the Global Economy is limping along. Its not sprinting, but its been resilient. Right. Do you from this point see. There are area
mervyn, lord king, welcome to hardtalk. thank you. pleasure to be on your show. it s great to have you here. as we look around the world, we see heightened global tension, uncertainty, conflict in so many different arenas. does that mean that for you, there are many reasons to be fearful about the impacts of geopolitics on the global economy? yes is the simple answer. i think we thought about the russian invasion of ukraine, we thought that was a contained conflict. now we see in the middle east. the more you fight, if this extends beyond gaza two major areas of conflict makes it much more likely that a third will occur. who knows? the chinese blockade of taiwan, perhaps. all of this is going to put enormous strain on the ability of the united states in particular, but also of europe, to provide the financial support, or support in terms of military equipment, to enable ukraine to resist russia, to bring about some kind of end to hostilities in the middle east, and to preve