Heba Press/. And MA
International Monetary Fund Managing Director Kristalina Georgieva said Thursday that despite the “remarkable” flexibility of the global economy, the “soft landing” after many difficulties requires taking steps to improve the outlook for “gloomy” growth and avoid falling behind weak countries.
At a press conference on the sidelines of the annual meetings of the International Monetary Fund and the World Bank, which continue until October 26, Georgieva noted that the global economy has demonstrated “remarkable resilience.” and appears to be heading towards a gentle decline. .
In its report on the global economic outlook, published at the start of the week, the Fund expects growth of 3.2% during 2024 and 3.1% within five years.
The Managing Director of the International Monetary Fund regretted that this percentage was the lowest medium-term growth rate in decades, noting that “trade no longer constitutes a powerful engine of growth in a more fragmented global economy”.
Georgieva stressed that the global economy risks becoming “stuck on a path of low growth and high debt”, and explained that this means reduced household incomes and a lack of employment opportunities. employment, and therefore a reduction in public revenues and a reduction in investments to face various challenges.
She stressed that certain priority policies are needed to avoid these expectations, including replenishing reserves, reviving medium-term growth and renewing the International Monetary Fund’s commitment to ensuring that “our policies, our lending tools and our governance are adapted to our objectives. »
In this regard, the “Global Policy Agenda” presented on this occasion by the International Monetary Fund calls on central banks to continue the fight against inflation, while “prudently” managing its implementation. It also shows the need for policy makers to focus on controlling budgets in order to preserve public finances.”
The Fund also recommends accelerating structural reforms and joint efforts by countries to address major challenges, with the aim of creating appropriate conditions to revive growth.
