World Bank CEO Georgieva on Global Economy and Dollar-Denominated Debt

The video discusses the potential for a prolonged US-China trade war and its impact on the global economy, highlighting factors like rising interest rates, strong dollar, and high debt levels. It emphasizes the need for prudent debt management and the importance of maintaining investor confidence amidst trade uncertainties. The video also explores the current economic cycle, suggesting that while a slowdown is occurring, global fundamentals remain relatively strong, with the US, Asia, and Europe taking prudent steps to mitigate risks.

What are the three main factors contributing to the projected global economic slowdown?

• Rising interest rates, a strong dollar, and increasing debt

• Decreasing interest rates, a weak dollar, and decreasing debt

• Rising interest rates, a weak dollar, and increasing debt

• Decreasing interest rates, a strong dollar, and decreasing debt

Why is the strong dollar a concern for emerging markets?

• It increases the cost of servicing dollar-denominated debt

• It makes exports cheaper

• It decreases the value of local currencies

• It leads to higher inflation

What is a key concern regarding countries with high levels of dollar-denominated debt?

• They are not taking necessary measures for prudent debt management

• They are investing too much in infrastructure

• They are increasing their export tariffs

• They are reducing their foreign reserves

What is the current state of the US economy according to the video?

• It is stagnant

• It is doing quite well

• It is experiencing a downturn

• It is in a recession

How have Asian countries responded to potential economic downturns?

• By reducing interest rates

• By taking prudent steps after the Asian crisis

• By increasing public spending

• By increasing trade tariffs