Families worldwide are feeling the impact of high prices, International Monetary Fund (IMF) Managing Director Kristalina Georgieva announced at the IMF/World Bank Annual Meetings in Washington, D.C. Highlighting the global economy’s challenges, she pointed to a “slow growth and high debt” path that threatens economic stability.
Georgieva noted that while inflation has been decreasing, thanks to central bank policies and improved supply chains, the benefits have not reached families. “The global economy has held up well,” she said, “but people are not feeling optimistic about their economic prospects. Families are still hurting from high prices, and global growth remains anaemic.” According to IMF forecasts, global growth is expected to reach 3.2% this year, slowing to 3.1% annually over the next five years.
The IMF’s Global Policy Agenda 2024 report, released yesterday, underscores this somber outlook. Although inflation has moderated, supported by tight monetary policy, significant uncertainty persists. Public debt is projected to approach 100% of global GDP by 2030, while slower growth could lead to lower incomes, fewer jobs, and reduced government resources to support families and tackle issues such as climate change.
Global economic risks include not only slow growth and high debt but also rising geoeconomic fragmentation, which threatens decades of gains from global economic integration. The report emphasizes that significant challenges lie ahead, including the transition to green energy, demographic shifts, and digitalization driven by advancements in artificial intelligence. While these changes bring potential for growth, they also pose new challenges for policymakers and economies worldwide.
With a fragile economic environment and waning confidence, the IMF cautions that the global economy could be “stuck” in a period of lower growth, higher debt, and economic vulnerability, affecting families, job markets, and governments alike.
