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There's No Room for Self-Inflicted Damage.
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To avoid this, the Managing Director of the IMF in her intervention advises emerging countries to rely on fiscal consolidation to create fiscal space and accumulation of reserves to cushion external shocks. The current expectation is that energy prices will remain high in the year 2027, that interest rates will increase in the fight against inflation, making public debt service more expensive, and that the use of AI will not only increase inequa…
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