The year 2024 will be “very difficult” for fiscal policy in many countries that will hold elections, International Monetary Fund Director General Kristalina Georgieva warned in an interview given to AFP and quoted by Euractiv.

“This year will be very difficult because fiscal policy has to restore reserves and manage the debt that has accumulated in many countries,” she said in an interview in Washington before leaving for the Davos forum, which starts in a few months.

“About 80 countries will have elections, and we know what happens to spending during election cycles,” said the Bulgarian economist.

Billions of people will go to the polls this year, with countries holding elections including India, the world’s most populous country, and the United States, the world’s largest economy. Taiwan, the world’s largest semiconductor producer, held presidential elections this Saturday.

Georgieva also delivered good news, however, saying that forecasts due from the IMF later this month show the global economy is set for a “soft landing” – meaning it will avoid recession despite tightening monetary policy. to bring inflation under control.

“Monetary policy is working well, inflation is coming down, but the job is not done yet,” she said. “So we are in the most delicate moment not to cut back [dobânzile de referință] too fast or too slow,” the head of the IMF said.