Statement by the Managing Director of the International Monetary Fund - Kristalina Georgieva - One Hundred and Ninth Meeting of the Development Committee - April 19, 2024

Jul 19, 2026

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Written statement by IMF Managing Director Kristalina Georgieva for the Development Committee’s 109th meeting on April 19, 2024, assessing the global economy and policy priorities. It highlights resilience amid ongoing disinflation, but warns that medium-term growth remains weak and low-income countries face persistent challenges. The statement calls for ensuring inflation returns durably to target, strengthening fiscal space for debt sustainability, accelerating productivity, supporting the green transition, and deepening multilateral cooperation in a shock-prone world.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

Statement Overview

Economic Outlook and Risks

Inflation Trends and Disinflation Dynamics

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 NINTH MEETING WASHINGTON, DC – APRIL 19, 2024 DC/S/2024-0019 April 19, 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 ninth meeting to be held on April 19, 2024. DEVELOPMENT COMMITTEE: THE MANAGING DIRECTOR'S WRITTEN STATEMENT April 2024 The global economy has been resilient and appears headed for a soft landing. Inflation continues torecede and risks have become more balanced globally. Nonetheless, medium-term growth prospects remain at the lowest level in decades and a smooth completion of the disinflation process should not betaken for granted. While the outlook for low-income developing countries (LIDCs) is improving, risks are tilted to the downside. The pace of convergence toward higher living standards has slowed, making it increasingly challenging to achieve the Sustainable Development Goals (SDGs). In the last mile of disinflation, central banks should ensure that inflation moves durably to target: they should neither ease policies prematurely nor delay too long and risk causing target undershoot. Fiscal policies need to rebuild budgetary room and ensure debt sustainability. Fostering faster productivity growth and facilitating the green transition are keys to improving long-term growth prospects. Multilateral cooperation is key to enhancing the resilience of the global economy in a more shock-prone world. ECONOMIC OUTLOOK AND RISKS The global economy has been surprisingly resilient …though growth remains subdued in both the near and the medium term. AEs are expecting a slight uptick in growth. Regional variations persist The global economy has shown a surprising resilience during global disinflation in the last two years, thanks to favorable demand and supply developments in major economies. Global growth for 2024 is projected at 3.2 percent, up by 0.3 percentage points compared to the projection from last October. Despite the resilience, near-term growth is below the historical average of 3.8 percent between 2000-19, reflecting restrictive monetary policies, withdrawal of fiscal support, and low underlying productivity growth. The latter is driven by declining labor force participation, weaker business investment, and persistent structural frictions that misallocate resources. Together with deepening geoeconomic fragmentation, these factors lead to a medium-term growth forecast of 3.1 percent for the global economy, the lowest level in decades. Growth in advanced economies (AEs) is projected to rise slightly by 0.1 percentage point to 1.7 percent from 2023 to 2024, driven primarily by robust U.S. economy. Among other AEs, while strengthening household consumption following the fall in inflation is expected to support the recovery, the pace is held back by persistently weak consumer sentiment and the fading of other one-off positive factors. While the aggregate growth in emerging market and developing economies (EMDEs) is expected to remain broadly stable at 4.2 percent for 2024, the paths of underneath astable aggregate EMDE growth. While the outlook for LIDCs is improving, longterm challenges continue to be daunting. Inflation is declining, with different speed across countries. Risks have become balanced. economies in different regions are projected to vary. A slowing Chinese economy is a risk to weakening the momentum in emerging and developing Asia, while Latin America and the Caribbean are expected to face headwinds from the effects of tight policies to bring down inflation. On the po

FAQs

What is the overall assessment of the global economy in the statement?

The global economy is described as resilient with inflation easing, but medium-term growth prospects remain low and disinflation should not be taken for granted.

What guidance does the statement give regarding monetary policy and inflation targets?

Central banks should ensure inflation moves durably to target, avoiding premature easing and also avoiding delays that could risk undershooting the target.

Which key risks and upside risks are highlighted?

Downside risks include commodity price shocks, persistent inflation, financial sector stress, strains in commercial real estate, China’s recovery faltering, disruptive fiscal adjustment and debt distress, and intensifying geoeconomic fragmentation; upside risks include productivity boosts.

Jul 19, 2026

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