Greek Central Bank President Stournaras said there will be similar risks in the global economy next year

Yannis Stournaras, Governor of the Bank of Greece, stated that the main risks that the global economy will face next year will be the same as the risks faced this year, and stated that supply and demand shocks, some financial difficulties in certain countries and customs tariffs are possible problems that may be faced next year.

Istanbul Economic Forum, organized by the Central Bank of the Republic of Turkey (CBRT) at the Istanbul Financial Center (IFM), brought together central bank governors and senior policy makers from around the world on October 8-9.

At the forum, Stournaras, Governor of the Central Bank of Greece, made an evaluation to the AA correspondent regarding the developments in the global economy and the Eurozone.

Stating that the main risks that the global economy will face next year will be the same as the risks faced this year, Stournaras stated that supply and demand side shocks, some financial difficulties in certain countries and customs tariffs are the possible problems that may be faced next year.

Pointing out that there is currently high inflation, Stournaras said, "Inflation is relatively high, that is, much above our target. The target in the Eurozone was 2 percent, and in the last available data it was 3.8 percent. Therefore, we need to reduce inflation." he said.

"I think it is necessary to keep inflation expectations under control in the Eurozone."

Yannis Stournaras noted that they gradually increased interest rates and said, "This reduced inflation without causing problems in the banks, that is, without financial stability problems and without a recession, and I think we will do the same now." he said.

Stournaras stated that supply-side shocks are difficult for central banks because central banks and monetary policy are better suited to combat demand-side problems.

Stating that he thinks it is necessary to keep inflation expectations under control in the Eurozone, Stournaras continued his words as follows:

"For now, we seem to have achieved this thanks to the reliability of the European Central Bank, its historical, hard-earned reliability. Therefore, I would say that the main task now is to keep expectations under control and ensure that they remain anchored at 2 percent until headline inflation also falls."

"I believe strongly in economic cooperation rather than trade restrictions"

Stournaras, President of the Central Bank of Greece, underlined that artificial intelligence is very important for the labor market.

"Will artificial intelligence take away people's jobs or complement people?" Stating that the question has been talked about a lot, Stournaras said, "Therefore, we hope that this will be the second option, that is, it will complement labor rather than replace it to a large extent." he said.

Stournaras concluded his words by noting that strong institutions are needed to protect people from the negative consequences of artificial intelligence:

"Let's preserve the positive aspects of AI and provide mechanisms to compensate for the negative aspects. I'm a strong believer in economic cooperation rather than trade restrictions. Let's assume that, say, tariffs around the world have now fallen to zero, geopolitical conflicts have ended, and a new era of economic cooperation has begun. You can't even imagine the increase this will create in the well-being of everyone on this planet."