“Next week, when finance ministers and central bank governors gather for our annual meetings, the main issues will be related to the global economic impact of transformational processes and political turmoil“, said International Monetary Fund Managing Director Kristalina Georgieva at the “Milken“ Institute in Washington, News.bg reports.
In her speech, she reviewed the prospects for the global economy and the main highlights of the upcoming IMF and World Bank Annual Meetings, which begin on October 13.
“How is the global economy doing? Better than we feared, but worse than necessary“, Georgieva said. She stressed that while there has been progress, the world faces growing uncertainty, driven by geopolitical shifts, technological and demographic transformations, and environmental damage. “Tighten your belts - uncertainty is the new normal”, she warned.
The IMF expects a slight slowdown in global growth, but sees resilience thanks to stronger economic policies, an adaptive private sector, and favorable financial conditions. However, Georgieva warned that “the real test of this resilience is yet to come”.
The IMF outlined three main goals: boosting economic growth, restoring public finances, and containing internal and external imbalances. Global public debt is projected to exceed 100% of GDP by 2029, putting a strain on public spending and increasing risks to stability.
Georgieva called on advanced economies to step up support for poor countries and stressed the need for fiscal consolidation everywhere. She said the United States must rein in its growing deficit, China must boost domestic consumption and restructure its fiscal policy, and Germany must accelerate public investment to support the private sector.