IMF chief calls for joint action against slowing growth, rising inflation
- IBJ Bureau
- Jul 15, 2023
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that the world will be looking for joint action to address rising economic fragmentation, slowing growth and high inflation.
Agile multilateral support is vital to tackle common challenges posed by debt vulnerabilities, climate change and limited concessional financing – especially for countries hit by shocks, not of their making, Ms Georgieva said in a blog.
In April, the IMF had projected global growth at 2.8 per cent in 2023, down from 3.4 per cent in 2022. The bulk of it – over 70 per cent – is expected to come from the Asia-Pacific region.
“Yet, recent high frequency indicators paint a mixed picture: weakness in manufacturing contrasts with resilience in services across the G20 countries and strong labour markets in advanced economies,” she has said.
At the same time, financial fragilities uncovered by tight monetary policy require careful management, particularly as restoring price stability remains a priority, the IMF MD has added.
“Global headline inflation seems to have peaked, and core inflation has eased somewhat, particularly in India. But in most G20 countries – especially advanced economies – inflation remains well above central banks’ targets,” she points out.