According to the IMF chief Kristalina Georgieva, poorer nations are faced with the risk of interest rates increasing while their economies aren’t growing, and may find themselves ‘really strangled’ to service debt, especially if it’s dollar-denominated.
- She further said ‘that is not only danger for them, it is a danger for global supply chains, it’s a danger for investor confidence — in other words, it has a ricochet impact on advanced economies.”
What is ricochet impact?
- Ricochet is rebound of a projectile that strikes a hard surface, or the rebounding projectile itself.
