International Monetary Fund (IMF) Managing Director Kristalina Georgieva has called for increased efforts to spur private-sector growth, strengthen macroeconomic fundamentals, and reduce global imbalances, as she outlined the Fund’s priorities for navigating high economic uncertainty.
Speaking at the launch of her Global Policy Agenda, Georgieva said the private sector “handles uncertainty better” and urged governments to press ahead with “broad and ambitious domestic reforms.” This would include “regulatory house cleaning” to spur innovation and entrepreneurship, while keeping trade “as an engine of growth.”
Her second priority was restoring fiscal and monetary strength. “Countries must rebuild fiscal space and reduce debt,” she said, urging a greater reliance on domestic revenues and “smart budget choices.” On monetary policy, she stressed the need to “preserve price stability and guard against financial stability risks” amid stretched equity valuations and growing interconnections between non-traditional financial firms and the banking system.
Finally, Georgieva called for concerted action to tackle widening global imbalances. She said surplus economies such as China need to “boost domestic demand,” while deficit countries, notably the United States, need to “reduce fiscal deficits and incentivize private savings.”
“With change comes opportunity,” Georgieva said. “At the IMF, we will continue to help countries pursue the opportunities in front of them.” Enditem
Source: IMF
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