Development Committee: The Managing Director's Written Statement

International Monetary Fund

No 2024/048, IMF Policy Papers from International Monetary Fund

Abstract: The global economy has remained resilient, and a soft landing is within reach. Global growth has been resilient despite a series of shocks and is projected to remain steady, and inflation has continued to moderate, although progress is uneven across countries. However, medium-term growth prospects remain weak, with the risk for the global economy to get stuck on a low growth-high debt path. While the low-income developing countries (LIDCs) continue to recover, many remain vulnerable, with significant scarring from recent shocks. The pace of convergence toward higher living standards has slowed, making it increasingly challenging to achieve the Sustainable Development Goals (SDGs). As inflation descends and approaches targets, monetary policy must ensure that inflation expectations are well anchored while supporting growth and employment. Fiscal consolidation is necessary to rebuild buffers, fund priority investments, and ensure long-term debt sustainability. Multilateral cooperation is essential to limit the costs associated with geoeconomic fragmentation, support efforts to address debt vulnerabilities, and harness the benefits while mitigating the risks associated with the green and digital transitions.

Keywords: IMF debt policy reform; IMF-WB cooperation framework; inflation expectation; IMF surveillance; IMF staff measure; goods inflation; Inflation; Climate change; Global (search for similar items in EconPapers)
Pages: 5
Date: 2024-10-22
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