Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated on Monday that elevated prices are a permanent reality, exacerbating economic challenges tied to sluggish growth and mounting debt. Speaking at the Bretton Woods Conference, she remarked, “The pain we all feel because prices have gone up is here to stay, and a higher level of prices makes many people around the world quite angry too.”
Georgieva highlighted the difficult economic environment, noting, “We are faced with this unforgiving combination of slow growth and high debt.” While she acknowledged that the global economy is performing reasonably well, she urged caution regarding ongoing concerns. “Trade is growing slightly slower than global growth,” she added.
The IMF is set to release updated global growth forecasts on Tuesday. Although she refrained from providing specific figures, Georgieva indicated that growth is anticipated to exceed 3%. Currently, the IMF forecasts a global real gross domestic product (GDP) growth of 3.2% for 2024 and 3.3% for 2025.
Georgieva also emphasized that climate risks are adversely affecting the economic outlook for certain countries. The annual meetings of the IMF and World Bank, which commenced on Monday, are expected to attract over 10,000 participants from finance ministries, central banks, and civil society groups. Discussions will focus on strategies to enhance uneven global growth, address debt distress, and finance the transition to green energy.
