Statement by the Managing Director of the International Monetary Fund - Development Committee - One Hundred and Tenth Meeting - October 25, 2024

Jul 19, 2026

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Statement outlines the International Monetary Fund Managing Director’s assessment for the Development Committee’s one hundred and tenth meeting on October 25, 2024. It highlights resilient global growth and moderating inflation, while warning that medium-term prospects remain weak due to low productivity, weak investment, and demographic aging. The statement emphasizes the need for monetary policy to anchor inflation expectations, fiscal consolidation to rebuild buffers and ensure debt sustainability, and multilateral cooperation to manage geoeconomic fragmentation and transition-related risks.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

Development Committee: The Managing Director's Written Statement

October 2024

Economic Outlook and Risks

Policy Priorities

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND TENTH MEETING WASHINGTON, DC – OCTOBER 25, 2024 DC/S/2024-0051 October 25, 2024 STATEMENT BY THE MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND Attached for information for the Members of the Development Committee is a Statement from the Managing Director of the International Monetary Fund, Kristalina Georgieva for the Committee’s one hundred and tenth meeting to be held on October 25, 2024. DEVELOPMENT COMMITTEE: THE MANAGING DIRECTOR'S WRITTEN STATEMENT October 2024 The global economy has remained resilient, and a soft landing is within reach. Global growth has been resilient despite a series of shocks and is projected to remain steady, and inflation has continued to moderate, although progress is uneven across countries. However, medium-term growth prospects remain weak, with the risk for the global economy to get stuck on a low growth-high debt path. While the lowincome developing countries (LIDCs) continue to recover, many remain vulnerable, with significant scarring from recent shocks. The pace of convergence toward higher living standards has slowed, making it increasingly challenging to achieve the Sustainable Development Goals (SDGs). As inflation descendsand approaches targets, monetary policy must ensure that inflation expectations are well anchored while supporting growth and employment. Fiscal consolidation is necessary to rebuild buffers, fund priority investments, and ensure long-term debt sustainability. Multilateral cooperation is essential to limit the costs associated with geoeconomic fragmentation, support efforts to address debt vulnerabilities, and harness the benefits while mitigating the risks associated with the green and digital transitions. ECONOMIC OUTLOOK AND RISKS The global economy has proved resilient … but mediumterm growth prospects remain weak. Growth amid AEs is expected to remain steady, with output in major economies converging as cyclical forces unwind. The global economy has demonstrated resilience despite a series of shocks and a sharp tightening of monetary policy aimed at curbing inflation. Global growth for 2024 is projected at 3.2 percent, virtually unchanged from the April 2024 WEO. In the medium term, however, global growth is expected to remain underwhelming and broadly flat, with 5-year ahead projections at their lowest in decades, and structural challenges such as population aging, weak investment, and historically low productivity. The aggregate picture hides significant variations across countries. Growth in advanced economies (AEs) is projected to remain at around 1.8 percent in 2024 and 2025. However, country dynamics vary significantly, as economic activity gets back in line with potential. Growth in the [U.S. is](U.S. is) expected to decelerate in 2025 as fiscal policy is gradually tightened and consumption slows, while the UK and the Euro Area are expected to grow faster, due to stronger domestic demand (the UK) and a pickup in consumption and net exports (the Euro Area) . EMDEs are projected to grow Growth outlook in emerging market and developing economies (EMDEs) is projected to remain broadly stable at 4.2 percent over the next two years. Emerging at a stable pace in the near-term but with regional variations. LIDC continue to recover but prospects remain less sanguine. Inflation continues to fall, although progress is uneven across countries. The balance of risks has shifted to the downside. Asia’s strong growth is expected to subside, with China slowing down. In contrast, growth in the Middle East and Central Asia is expected to increase as temporary disruptions to oil production and shipping fade, assuming regional conflicts don’t escalate and lead to new disrupti

FAQs

What overall message does the statement give about the global economy in 2024?

It states that the global economy has remained resilient, with growth steady and inflation continuing to moderate, though progress varies across countries.

What medium-term risks does the statement emphasize?

It warns that medium-term growth prospects are weak and that the global economy could become stuck on a low-growth, high-debt path, citing structural challenges and downside risks.

What policy priorities are recommended for central banks and governments?

Central banks should maintain flexible policy to support growth while keeping inflation expectations well anchored, and fiscal consolidation is needed to rebuild buffers, fund priority investments, and sustain long-term debt.

Jul 19, 2026

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