Opening Remarks for Annual Meetings Press Conference
IMF News, October 17, 2019
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- Published: October 17, 2019
Introduction
- Speaker: Kristalina Georgieva, Managing Director, IMF
- Event date: October 17, 2019
- Context: First Annual Meetings as Managing Director; remarks delivered "As Prepared for Delivery."
- Framing metaphor: Alexander Pushkin quote — “The breath of Autumn begins to ice the roadway.” Used to describe the current outlook as a "slightly chill" and "slippery terrain."
Global Outlook — "Synchronized Slowdown"
- Forecasts:
- 3.0 percent in 2019.
- 3.4 percent in 2020.
- Both figures represent a downgrade from April projections.
- Scope:
- Measured by GDP, nearly 90 percent of the world is experiencing slower growth.
- Drivers of the slowdown:
- Trade disruptions.
- Brexit.
- Geopolitical tensions.
- Characterization: The global economy is described as being in a "synchronized slowdown."
Five Policy Priorities to "Travel Safely and Efficiently"
- Overall reference: The Global Policy Agenda outlines recommended steps.
1) Undo the harm on trade
- Objective: Find a lasting solution to build a stronger trading system.
- Note: Encouragement from the recent announcement between the U.S. and China; Annual Meetings seen as an opportunity to move from a "trade truce to a trade peace."
2) Use monetary policy wisely
- Recommendation: Accommodative policy remains appropriate in many countries.
- Preconditions: Central banks must maintain independence and communicate plans clearly.
- Caution: Be mindful of financial stability risks from prolonged low rates.
3) Enable fiscal policy to play a more central role
- Recommendation: Countries with fiscal space should deploy — or prepare to deploy — fiscal firepower.
- Constraint: Global public debt is at a record high; advice will not apply everywhere.
4) Structural reforms to boost medium- and long-term growth
- Rationale: Lagging productivity requires measures for stronger, more inclusive, and more resilient growth.
- Examples: Cutting red tape; boosting female labor force participation.
- Drivers increasing urgency: Potential job losses from automation, dislocations from trade, and aging populations.
5) Promote stronger international cooperation
- Scope: Extends beyond trade to include financial regulatory reform, addressing climate change, safely adapting to fintech, and fighting money laundering.
- Principle: Challenges that do not recognize borders require solutions that do not either.
- IMF role: Positioned as central to the global financial safety net; members are working to ensure the Fund remains adequately resourced and governance reforms continue.
Institutional and Operational Note
- Announcement: Beginning January 1st, 2020, all IMF publications in digital formats will be made available free to the public.
Conclusion and Objectives for the Meetings
- Goal: Make progress on the five priorities to "secure a safer and more efficient journey on the challenging road ahead."
- Closing: Speaker opens the floor to questions.
Opening Remarks for Annual Meetings Press Conference — Kristalina Georgieva, October 17, 2019.