Seeing signs of global growth bottoming out, inflation cooling: IMF MD Kristalina Georgieva

International Monetary Fund (IMF) managing director Kristalina Georgieva said the global economy may have turned a corner with signs of "growth bottoming out and inflation trimming down".

She said the focus on reforms in India over the last few years, especially on tax harmonisation, had helped the country become a bright spot. With regard to the global economic situation, "things look less bad", Georgieva said in an interview.

Global Tightening to be Hard on EMs: IMF Chief

However, there is concern that growth this year is decelerating, although the signs on inflation are positive.

"It wasn't very high to begin with - 3.4% for 2022. Now we predict 2.9% for 2023," she said. "We also see signs that inflation may be finally going in the right direction."

As for indications of further tightening by central banks such as the US Federal Reserve and the challenge this could pose for emerging economies such as India, she said it would be hard on them.

"This is when good news may turn into bad news... It is very important, though, that the Fed stays the course. Why? Because if we do not return to price stability, that is a big impediment to growth, to investors to invest, to consumers to make long-term purchases," she said. "Of course, that makes it harder for emerging markets to see their currencies depreciate and it makes it harder for them to fight inflation in their territories."