By Uzair Adam
Families worldwide are grappling with the effects of high prices, according to the Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva.
Speaking at the IMF/World Bank Annual Meetings in Washington, D.C., Georgieva highlighted the ongoing challenges facing the global economy, which she described as being on a trajectory of slow growth and rising debt.
“The global economy has held up well, and inflation is gradually decreasing thanks to central banks’ coordinated efforts and easing supply chains,” Georgieva said during the Global Policy Agenda 2024 briefing.
“However, people’s optimism about their economic prospects remains low. Families are still hurting from high prices, and global growth remains sluggish.
“We project a 3.2 percent growth rate this year, slowing to an annual 3.1 percent over the next five years,” she added.
According to Georgieva, while trade has traditionally driven economic growth, it is no longer the powerful engine it once was.
The IMF report warned that the world economy risks being trapped in a cycle of lower growth, high debt, reduced government revenues, and constrained resources to support families and climate change initiatives.
The Global Policy Agenda 2024 report further indicated that the global economy is resilient, with a potential for a soft landing as inflation moderates.
However, significant uncertainty looms, with risks skewed to the downside. Public debt levels are at historic highs, projected to approach 100 percent of GDP by 2030, and geoeconomic fragmentation threatens to reverse decades of progress from cross-border economic integration.
The report also points to transformative shifts—such as the green transition, demographic changes, and digitalization, including AI—that present both challenges and opportunities for global economies.
As a response, Georgieva emphasized the importance of a policy shift aimed at escaping the cycle of low growth and high debt.
She called for monetary policies that ensure inflation stabilizes at target levels and fiscal policies that pivot toward consolidation to build resilience and maintain debt sustainability.