Although the world economy has proven to be resilient, inflation is declining and this is being done without risk of recession, in the short term, we must focus on the fiscal aspect as an immediate priority, warned the International Monetary and Financial Committee (IMFC).
CMF President Mohammed Aljadaan explained that the global economy has moved closer to a soft landing, global growth is steady and inflation continues to moderate, but progress has been uneven among members and there is uncertainty, with risks skewed to the low.
He added that medium-term growth prospects remain moderate and global public debt has reached an all-time high.
“Going forward, we will work to further ensure a soft landing, while intensifying our reform efforts to move away from the path of low growth and high debt,” the Saudi finance minister also said at an IMFC press conference. within the framework of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank.
IMF Managing Director Kristalina Georgieva emphasized that fiscal buffers have been exhausted, but fiscal pressures are high. And this attention to medium-term fiscal consolidation, which begins now and is not delayed, was evident for many of the member countries.
He added that in the short term, the focus is on two things: First, how central banks need to remain vigilant, based on evidence, carefully monitoring the data to make sure they don’t cut rates too early or too late. , and that monetary policy continues to communicate well so that expectations are based on that communication.
“In terms of the medium to long term, it is not surprising that there is a very substantial and deep debate about what can be done to improve the growth prospects of countries, what can improve productivity, what can be a factor for countries achieve better outcomes for their populations, but also attention to the role that a more vibrant global economy can play for this higher growth trajectory#, emphasized Kristalina Georgieva.
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