Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has emphasized the economic challenges families are facing worldwide due to persistently high prices.
During the Global Policy Agenda 2024 briefing at the IMF/World Bank Annual Meetings in Washington DC, Georgieva painted a cautious picture of the global economy, warning of slow growth and significant debt challenges.
“The global economy has held up well, with inflation gradually declining, largely due to Central Banks’ efforts and easing supply chain disruptions. However, families are still hurting from high prices, and global growth remains anemic,” she stated.
Georgieva noted that while the IMF forecasts a 3.2% growth rate for the global economy this year, this figure is expected to decrease to 3.1% over the next five years. Additionally, she highlighted that trade has weakened as a growth engine, contributing to a “more fragile world.”
The IMF’s Global Policy Agenda 2024 report warns that public debt levels have reached record highs, with projections indicating that debt could approach 100% of global GDP by 2030. The report also underscores that transformative changes, such as climate action, demographic shifts, and the rise of digital technologies like artificial intelligence, will reshape the global economic landscape.
Georgieva called for a policy shift to mitigate these risks, stressing the importance of fiscal consolidation, inflation control, and growth-boosting reforms. “The global economy is at risk of being stuck on a path of lower growth and high debt, leading to lower incomes, fewer jobs, and fewer resources for both families and climate action,” she warned.
The IMF remains committed to supporting its members through policy advice, financial assistance, and capacity development while advocating for multilateralism and economic integration to foster a resilient global economy.