IMF chief calls on countries to improve financial stability – 2024-04-18 18:11:28

by times news cr

2024-04-18 18:11:28

Countries must urgently improve financial resilience to prepare for the next shock.

As Day.Az reported on Thursday with reference to Trend, this was stated today by IMF Managing Director Kristalina Georgieva during a briefing on global policy within the framework of the IMF Spring Meetings in Washington.

“There has been a lot of turbulence in the global economy in recent years. We have had a pandemic, wars, climate disasters during the crisis. Despite many shocks and difficult financial conditions, growth remains consistently positive. And we have slightly raised our forecast for this year to 3.2 percent. And yet there is something to worry about. Inflation has decreased, but has not disappeared,” she said.

Georgieva mentioned that medium-term growth prospects of around three percent are the weakest in decades, hampered by a widespread slowdown in productivity.

“And divergences within and between groups of countries are growing, with poorer countries falling further behind. In this context, we are focusing on key priorities. First, creating fiscal buffers. Fiscal constraints themselves are now becoming even more important as most countries’ budgetary capacity has been exhausted.

In times of crisis, countries must urgently improve financial resilience to be prepared for the next shock,” said the IMF Managing Director.

Georgieva further emphasized that the time has come to adopt a medium-term framework for fiscal consolidation.

“We understand that one size does not fit all. The speed of consolidation varies depending on the circumstances of the country. Therefore, we will also balance between mobilizing revenues and improving the efficiency of spending. It is important to remember that this burden should not fall on the most vulnerable people,” – she said.

Georgieva also noted that the second priority is fundamental reforms, strengthening governance, increasing women’s participation in the labor market, and improving access to capital.

“We are focusing much of our research on policies aimed at improving the growth prospects of our members, especially those most seriously affected by external shocks. And this brings me to the third priority: renewing our commitment to our membership. We have provided financial support amounting to more than 300 billion US dollars to almost 100 countries,” she added.

It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.

Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.

Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.

The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.

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