Statement by the Managing Director of the International Monetary Fund - for the 106th Meeting of the Development Committee - October 2022

Jul 19, 2026

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Statement from the International Monetary Fund Managing Director for the Development Committee’s 106th meeting (October 14, 2022) addresses a worsening global economic outlook shaped by simultaneous shocks. It highlights rising, broad-based inflation; Russia’s war in Ukraine and geopolitical risks disrupting commodities and trade; China’s slower growth tied to lockdowns and housing weakness; and climate-driven extreme weather costs. The statement explains policy trade-offs for central banks, pressures on low-income developing countries, expected growth slowdowns for 2022-2023, and the need for coordinated, targeted fiscal support and financial stability.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages7

Reading Time18 min

AccessFree to download

Development Committee: The Managing Director's Written Statement

Economic Outlook and Risks

Several shocks are hitting the global economy at the same time

Global growth projections for 2022 and 2023

Outlook for EMDEs and regional differentiation

Impact on LIDCs and food crisis dynamics

Inflation outlook and downside risks

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fundon the Transfer of Real Resources to Developing Countries) DC/S/2022-0058 October 12, 2022 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 sixth meeting to be held on October 14, 2022. DEVELOPMENT COMMITTEE: THE MANAGING DIRECTOR'S WRITTEN STATEMENT October 2022 Several simultaneous shocks are weighing on the global economic outlook and complicate policymaking. Inflationary pressures are on the rise and increasingly broad based. Russia’s war in Ukraine continues to send shockwaves through the global economy, including by disrupting commodity markets and contributing to higher sovereign risk spreads. Lower growth in China as a result of lockdowns and a weaker housing market curtails global demand, while climate change is generating increasingly costly extreme weather events. The combination of lower growth and high prices squeezes household budgets, especially in low-income developing countries (LIDCs) where hard-to-replace spending items, such as food, account for a large share of consumption. Central banks face difficult policy trade-offs, as both overand under-tightening the monetary stance would come with significant costs. Emerging and Developing Economies (EMDEs) need to cope with less favorable financial conditions and weaker currencies that raise the domestic currency value of foreign debt—a constellation that contains potential for wider debt distress. Policymakers should focus on gaining control over inflation, preserving financial stability, and using focused and well-targeted fiscal interventions to support those most in need. Global cooperation is more important than ever, but it is also under acute threat from geopolitical developments. ECONOMIC OUTLOOK AND RISKS Several shocks are hitting the global economy at the same time The global economy has again entered turbulent waters as it is experiencing simultaneous economic, geopolitical, and ecological shocks. Inflation has reached levels not seen in decades, squeezing household budgets and putting pressure on central banks to accelerate monetary policy normalization. Russia’s war in Ukraine and other security issues provoke geopolitical dislocations, they also risk fragmenting global trade networks that have generated wealth and lifted millions out of poverty in previous decades. While the COVID-19 pandemic’s most acute phase seems over, local and regional outbreaks continue to disrupt economic activity. Natural disasters linked to climate change are exerting an increasingly heavy human and economic toll. Global growth in 2022 is projected to slow to 3.2 percent from 6.0 percent in 2021, a downward revision of 0.4 percentage point relative to the April 2022 World Economic Outlook. The growth forecast for 2023 has been marked down even more significantly, to 2.7 percent from 3.6 percent in April—if this projection materializes, it would be the weakest growth performance of recent decades outside the Global Financial Crisis and the COVID-19 Pandemic. Over the medium term, global growth is forecast to average just below 3½ percent. The outlook for EMDEs is for abroad-based slowdown, although with some regional differentiation Growth in LIDCs is holding up somewhat better, although again with sizeable differences between regions Inflation has emerged as a major threat to economic welfare Downside risks are large The slowdown is broad based: advanced economies (AEs) are taking a significant part of the impact, with growth projected to slow from 5.2 percent in 2021 to 2.4 percent in 2022. However, EMDEs are also projected to expand at a much slower p

FAQs

What main shocks are affecting the global economic outlook in the statement?

The statement cites rising inflation, Russia’s war in Ukraine and related geopolitical disruptions, slower growth in China from lockdowns and housing weakness, and climate change driving costly extreme weather events.

How does the statement describe the policy dilemma faced by central banks?

It notes difficult trade-offs: both over-tightening and under-tightening monetary policy could impose significant costs, given the severity of inflation and growth pressures.

What does the statement project for growth in 2022 and 2023 across EMDEs and LIDCs?

Global growth is projected to slow, with EMDE growth dropping to around 3.7 percent in 2022 and remaining near that level in 2023. For LIDCs, average growth is expected to improve in 2022 to about 4.8 percent, though with significant differences by region and country exposure.

Jul 19, 2026

Upload by Jiven