Tue. May 21st, 2024

Marrakech: In an interview with NDTV in Marrakech, Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), discussed various issues impacting the global economy. She highlighted the macroeconomic stability in India and the challenges faced by China. Gopinath also addressed the potential of artificial intelligence (AI) and its impact on productivity and job markets. She expressed the need for regulation to ensure that AI benefits humanity.

Gopinath noted that AI could result in job losses and changes in pay structures. However, she emphasized that historically, technology has led to the creation of more jobs in different sectors. She called for policies to support workers affected by AI-driven changes.

Regarding India’s economic growth, Gopinath stated that the country has shown strong growth and is among the major economies with a growth rate of 6.3%. However, she cautioned against making predictions about India becoming the third-largest economy by 2030, highlighting the uncertainties caused by the Covid pandemic and the conflict between Russia and Ukraine.

The IMF official also discussed concerns about China’s growth, including its property sector, ageing population, and weak productivity growth. She mentioned that while China’s slowdown may have some spillover effects on other Asian countries, she did not expect a significant impact on India. However, a global economic slowdown from Asia could affect India indirectly.

Gopinath attributed the lower global growth outlook for 2023 to ageing demographics and weakening productivity, with China playing a significant role. She also addressed food insecurity resulting from the Russia-Ukraine conflict, particularly affecting low-income countries that spend a substantial portion of their consumption basket on food. The IMF has taken measures, such as creating the Food Shock Window, to assist countries in need.

Regarding climate change, Gopinath acknowledged the economic costs of extreme weather events but stated that, for now, the impact on global growth is relatively small due to the resilience of larger economies. However, she noted that small island nations and countries like India, experiencing rapidly rising temperatures, are more vulnerable.

Gopinath commended India’s role in advocating for reforms in Multilateral Development Banks and highlighted the importance of including the African Union in the G20 due to the significant working-age population in Africa in the coming years.

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