Weak medium-term growth prospects for the global economy: IMF chief

GANDINAGAR, India, July 18 (Reuters) – Global economic activity is slowing, especially in the manufacturing sector, and the medium-term outlook remains poor, International Monetary Fund chief Kristalina Georgieva said on Tuesday at a G20 financial leaders meeting.

Inflation has finally started to come down, she said, although headline inflationary pressures are still too high and core inflation remains robust despite significant monetary tightening.

However, inflation is likely to remain higher for a long time, when further monetary policy tightening will be required, the managing director of the IMF has warned.

“Despite the progress made, the work is not done yet – monetary policy must stay the course. Celebrating prematurely can undo hard-won gains in the disinflation process.”

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(Swati Bat in Mumbai and Shivam Patel in New Delhi)