IMF Managing Director Kristalina Georgieva has expressed concern over the global economy’s future, predicting lukewarm growth in the medium term. Speaking at a recent event, Georgieva emphasized that economic recovery from the COVID-19 pandemic remains fragile, hindered by persistent inflation, geopolitical tensions, and rising debt levels in both advanced and developing nations.
Georgieva highlighted that current projections show global growth falling below its historical average, with many economies struggling to return to pre-pandemic levels of productivity. She stressed that without decisive reforms, the world risks entering a prolonged period of slow growth, which could exacerbate social inequalities and stall progress on crucial issues like poverty reduction and climate change.
To counter these challenges, the IMF chief urged governments to implement structural reforms aimed at enhancing productivity, improving fiscal frameworks, and fostering innovation. She also called for international cooperation to manage debt vulnerabilities, address the climate crisis, and ensure more inclusive economic policies that benefit all sectors of society.
While acknowledging the short-term difficulties, Georgieva remained optimistic that with the right policies, the global economy can rebound more robustly. She encouraged leaders to act swiftly, as delays in reform could lead to greater long-term damage.
In conclusion, the IMF chief’s message is clear: the path to sustainable global growth requires immediate action. Countries must adapt to the new economic reality, addressing systemic weaknesses while working collaboratively to create a resilient and inclusive future.
