IMF President Georgieva: Uncertainty Will Be the New Normal

Important Warnings Before the IMF-World Bank Annual Meetings

IMF President Kristalina Georgieva delivered a speech titled "Opportunities in Times of Change" ahead of the IMF-World Bank Annual Meetings to be held from October 13-18. In her speech, she emphasized that uncertainties surrounding the global economy have increased and will become permanent.

The World Economy is More Resilient than Expected

Georgieva stated that finance ministers and central bank governors will discuss urgent economic issues at the upcoming meetings. She noted that the global economic situation has managed to cope better than feared, yet still remains below the necessary levels. Reminding that many experts had predicted a short-term recession in the U.S. last April, Georgieva indicated that many developed and developing countries are showing economic resilience in the current situation.

Global Growth is Expected to Slow

Referring to the World Economic Outlook report to be released next week, Georgieva forecasted that global economic growth will only slow down "slightly" this year and in 2024. She stated that the world economy is generally resilient against multiple shocks.

Important Messages to Policymakers

Georgieva mentioned that global trade is continuing in a rule-based manner and called on politicians to protect trade as the "engine of growth." She expressed the need for necessary measures to ensure the sustainability of world trade.

Global Public Debt: Warning Bells are Ringing

Georgieva emphasized that global public debt is expected to exceed 100% of GDP by 2029, negatively impacting both developed and developing countries. She pointed out that rising debt levels are restricting governments' capacity to spend.

Effects on Private Consumption

Georgieva added that China needs significant reforms to boost private consumption and revitalize its economy. She noted that these reforms could also help balance the depreciation of the currency.