IMF chief urges policymakers to lower geopolitical temperature amid slowing global growth

WASHINGTON, Oct. 17 (Xinhua) — International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday urged policymakers to “lower geopolitical temperature,” as medium-term growth is forecast to be “lackluster.”
“We are all very worried about the expanding conflict in the Middle East and its potential to destabilize regional economies and global oil and gas markets,” said Georgieva in a curtain raiser speech ahead of the 2024 IMF and World Bank Group Annual Meetings.
The IMF chief said that inflation rates may be falling, but the higher price level “is here to stay.”
Domestically, governments must work to reduce debt and rebuild buffers for the next shock, the IMF chief said.
Georgieva also urged policymakers to focus on reforms — make job markets work for people, mobilize capital, and enhance productivity.
Georgieva said that so far, trade has shown “remarkable resilience” in the face of new barriers.
“Countries would do well to recognize that the rules-based global trading system delivered many benefits and is worth preserving,” she added.
The world’s finance ministers and central bank governors will gather in Washington D.C. for the 2024 IMF and World Bank Group Annual Meetings from Oct. 21 to Oct. 26. ■