Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has emphasized the need for the equitable distribution of global economic growth across all countries, highlighting a significant disparity in economic performance worldwide.
Speaking at the World Economic Forum held in Saudi Arabia on Sunday, Georgieva noted the stark realities facing the global economy, including the approximately 800 million people currently suffering from famine.
During her address, Georgieva pointed out that the global economy has shown resilience in the face of repeated shocks, thanks largely to responsible public financial management and efforts to create favorable conditions for private sector growth.
However, she expressed concern over the slow pace of global economic growth, which, despite reaching 3.2% last year, remains below historical standards.
The IMF chief identified a major issue as the considerable economic gap between countries, with some achieving robust growth while others lag significantly behind.
“We will face significant difficulties in the future if we fail to find solutions to these problems,” Georgieva warned.
She stressed the importance of continuing to build economic strength and maintaining responsibility towards public finance and monetary policies, asserting that there is no alternative to these critical measures.
The IMF has issued a cautionary assessment of the global economy, indicating a continued deceleration in growth rates since the aftermath of the 2008-09 global financial crisis.
According to the IMF’s latest World Economic Outlook, without significant policy intervention and advancements in emerging technologies, the robust growth rates witnessed in previous decades are unlikely to be restored.
The report projects a global growth rate of just above 3 percent by 2029, representing a notable slowdown compared to historical averages.
Analysis indicates that by the end of the decade, growth could dip by approximately one percentage point below pre-pandemic levels, posing a threat to improvements in living standards.
Furthermore, the uneven nature of this slowdown between developed and developing nations raises concerns about the prospects for global income convergence.
