High interest rates in the United States make investments in the economies of developing countries unprofitable, said the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, the Forum’s press service reported on April 28. World Economic.
During a special session of the WEF in Riyadh, Georgieva, in particular, said: “Firstly, we see that high interest rates are having a negative impact on growth prospects around the world. Second, high interest rates in the United States mean money flows there: why take risks in emerging markets when you can invest in US Treasuries?.
In addition, he noted that high interest rates in the United States and a strong dollar result in a depreciation for “lots of coins” and this makes it difficult for the affected countries to combat inflation.
The IMF chief also noted that inflation in the United States will decline by 2025, but interest rates may not return to pre-pandemic levels.
Let us remember that in March the United States Federal Reserve System (FRS) maintained the base rate between 5.25% and 5.50%.
Source: Rossa Primavera
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