The Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva, addressed key economic challenges at the 2024 Global Policy Agenda briefing, part of the ongoing IMF/World Bank Annual Meetings in Washington, DC. She emphasized the strain high prices continue to place on families globally, despite a decline in inflation. Georgieva warned that the global economy is at risk of stagnating in a cycle of slow growth and high debt.
While inflation has eased, thanks to central bank interventions and improvements in supply chain performance, Georgieva noted that families are still hurting from elevated costs. She observed a prevailing sentiment of unease about economic prospects, stating, “The global economy has held up well, but people are not feeling good about the economic prospects of their economies… families are still hurting from high prices and global growth is anemic.”
The IMF projects global growth at 3.2% for this year, which is expected to decline to 3.1% annually over the next five years. Additionally, public debt has reached record levels and is predicted to approach 100% of GDP by 2030, as geoeconomic fragmentation threatens to disrupt decades of economic integration.
The IMF’s Global Policy Agenda report also highlighted significant transformative trends shaping the global economy, including the green transition, demographic shifts, and digitalization, including artificial intelligence. These developments, while posing challenges, also bring new opportunities for economic growth and innovation.
