IMF Chief Sees Inflation Dropping Further in 2024

FILED - 16 June 2023, Luxembourg: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva speaks during a press conference at the European Convention Center in Luxembourg. Photo: -/European Council/dpa
FILED - 16 June 2023, Luxembourg: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva speaks during a press conference at the European Convention Center in Luxembourg. Photo: -/European Council/dpa
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IMF Chief Sees Inflation Dropping Further in 2024

FILED - 16 June 2023, Luxembourg: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva speaks during a press conference at the European Convention Center in Luxembourg. Photo: -/European Council/dpa
FILED - 16 June 2023, Luxembourg: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva speaks during a press conference at the European Convention Center in Luxembourg. Photo: -/European Council/dpa

Inflation is easing faster than expected but has not been fully defeated, International Monetary Fund chief Kristalina Georgieva said on Thursday, urging central bankers to carefully calibrate their decisions on cutting interest rates to incoming data.
Georgieva said headline inflation for advanced economies was 2.3% in the final quarter of 2023, down from 9.5% just 18 months ago, and the downward trend was expected to continue in 2024.
That would create the conditions for central banks in major advanced economies to begin cutting rates in the second half of the year, although the pace and timing would vary, she told an event hosted by the Atlantic Council think tank, according to Reuters.
"On this final stretch, it is doubly important that central banks uphold their independence," Georgieva said, urging policymakers to resist calls for early rate cuts when necessary.
"Premature easing could see new inflation surprises that may even necessitate a further bout of monetary tightening. On the other side, delaying too long could pour cold water on economic activity," she said.
Georgieva said next week's World Economic Outlook would show that global growth is marginally stronger given robust activity in the United States and in many emerging market economies, but gave no specific new forecasts.
She said the global economy's resilience was being helped by strong labor markets and an expanding labor force, strong household consumption and an easing of supply chain issues, but said there were still "plenty of things to worry about."
"The global environment has become more challenging. Geopolitical tensions increase the risks of fragmentation ... and, as we learned over the past few years, we operate in a world in which we must expect the unexpected," Georgieva told an event hosted by the Atlantic Council think tank.
She said global activity was weak by historical standards and prospects for growth had been slowing since the global financial crisis of 2008-2009. The global output loss since the start of the COVID-19 pandemic in 2020 was $3.3 trillion, disproportionately hitting the most vulnerable countries.
Georgieva said the US had seen the strongest rebound among advanced economies, helped by rising productivity growth. Euro area activity was recovering more gradually, given the lingering impact of high energy prices and weaker productivity growth.
Among emerging market economies, countries like Indonesia and India were faring better, but low-income countries had seen the most severe scarring.
Given a significant and broad-based slowdown in productivity growth, the IMF's five-year outlook for global growth was just above 3%, well below its historical average of 3.8%, she said.
"Without a course correction, we are ... heading for 'the Tepid Twenties' - a sluggish and disappointing decade," Georgieva said, urging continued vigilance to restore price stability, rebuild fiscal buffers and jumpstart growth.
She said foundational reforms, such as strengthening governance, cutting red tape, increasing female labor market participation and improving access to capital could lift output by 8% in four years, she said.
Even more was possible with policies to encourage economic transformation, speeding up the green and digital transition, which could offer huge opportunities for investment, jobs and growth, she said.
Artificial intelligence offered huge potential benefits but also risks, with a recent IMF study showing that AI could affect up to 40% of jobs across the world and 60% in advanced economies, Georgieva said.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.