- IMF Managing Director Kristalina Georgieva delivers a speech to kick off the 2024 IMF and World Bank Group Annual Meetings.
Washington, D.C., October 18, 2024 — In anticipation of the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington, D.C., Managing Director Kristalina Georgieva delivered a speech outlining the global economic outlook and key policy priorities.
Georgieva stated that while the global battle against inflation has essentially been won, significant challenges still confront the world economy.
“First, let’s celebrate the positive news, and rightly so, as we haven’t had much of it lately. The global inflation surge is easing. This progress is due to strong monetary policy measures, reduced supply chain issues, and declining food and energy prices, guiding us back toward price stability. Remarkably, this has been achieved without pushing the global economy into recession or causing widespread job losses, which were concerns during the pandemic and past inflation episodes. Thankfully, these fears did not materialize,” she shared with an audience of policymakers and media at the IMF headquarters in Washington, DC.
It’s not yet time to celebrate. We still face significant levels of debt, stagnant productivity growth, and the medium-term risks of geopolitical conflict and instability. Additionally, we must address long-term challenges such as climate change and funding the Green Transition.
“Medium-term growth is expected to be sluggish—slightly lower than pre-pandemic levels, but still far from sufficient. It won’t be enough to eliminate world poverty, create the necessary jobs, or generate the tax revenues governments require to manage their significant debt and meet pressing investment needs, including those for the green transition,” the Fund’s Managing Director warned.
Georgieva also highlighted concerning trends, suggesting that trade wars, protectionism, and fragmentation might further diminish growth prospects.
“Moving forward, trade will no longer be the same engine of growth it once was. I predicted this fracturing back in 2019, right from this very location. However, the situation is now even worse. It’s as if cold water is being poured on an already lukewarm global economy,” she warned.
Georgieva noted an optimistic tone, emphasizing the urgent need for cooperation over confrontation. In her speech ahead of next week’s Annual Meetings of the IMF and World Bank, she expressed her hope that this spirit of collaboration will prevail.
“My message during this Annual Meeting is a call for collaboration in a thoughtful manner to enhance our collective prospects. Instead of accepting global tensions as a given, let us commit to reducing geopolitical tensions and focus on tasks that can only be addressed together.
“Trade has lowered prices, improved quality, and created jobs, demonstrating remarkable resilience despite emerging barriers often arising in third countries. However, we must acknowledge that while redirection can be beneficial, it has its limits, and we cannot assume that this approach will be sustainable indefinitely.”
Source: IMF
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