The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has highlighted the economic strain that families worldwide are experiencing due to persistently high prices.
Speaking at the Global Policy Agenda 2024 briefing during the IMF/World Bank Annual Meetings in Washington DC, Georgieva painted a cautious picture of the global economy, warning that it faces slow growth and high 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,” Georgieva said.
She noted that while the IMF forecasts a 3.2% growth rate for the global economy this year, that figure is expected to dip to 3.1% over the next five years. According to her, trade has also weakened as an engine of growth, contributing to a “more fragile world.”
The IMF’s Global Policy Agenda 2024 report warns that public debt levels are at record highs, with debt expected to approach 100% of global GDP by 2030. The report also stresses that major 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 address these risks, emphasizing the need for 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 said.
The IMF is committed to supporting its members through policy advice, financial assistance, and capacity development while advocating for multilateralism and economic integration to ensure a resilient global economy.
