IMF's Georgieva Urges G-20 Leadership To Strengthen Global Financial Safety Net

Amid the third meeting of the G-20 finance ministers and central bank governors, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva in Gandhinagar has urged the G-20 leadership to strengthen the global financial safety net.

Notably, the global economy has shown some resilience. Despite successive shocks in recent years and the rapid rise in interest rates, global growth—although anaemic by historical standards—remains firmly in positive territory, supported by strong labour markets and robust demand for services. 

She added that activity is slowing, especially in the manufacturing sector. Looking further ahead, medium-term growth prospects remain weak. Moreover, divergences in economic fortunes across countries are a persistent concern: some pockets of the global economy are doing well; others are weakening but still growing; and vulnerable countries are falling further behind.

Georgieva mentioned, "We are thus looking at a mixed picture, and risks remain on the downside. Inflation could remain higher for longer, requiring even more monetary policy tightening, and fragmentation could weigh even more on growth."

To mitigate these risks, I call upon G-20 leaders to seize the opportunity to move the global economy onto a more vibrant medium-term path. This requires both domestic and international policy action, she stated.

Talking about India, Georgieva said that the country is a bright spot in the global economy and the vibrancy of India has shined through clearly during our gatherings.