As Chancellor Rachel Reeves considers her first budget, managing director Kristalina Georgieva cautioned that growth won’t provide the tax revenues needed to pay off debt and finance energy transition investments.
According to her, even though inflation rates are declining, the higher price level that we see in our wallets is here to stay.
People are upset, and families are suffering. Inflation rates in advanced economies reached all-time highs.
It is predicted that growth would be modest in the medium term. Not much worse than before the outbreak, but still not good enough.
Not enough to end poverty worldwide. Not to produce the quantity of jobs we need. nor to produce the tax income required by governments to pay off large debt loads and fund numerous investment projects, such as the green transition.
