Opening Remarks by Managing Director Kristalina Georgieva at the World Economic Outlook Press Conference, Davos
IMF News, January 20, 2020
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Bibliographic details
- Published: January 20, 2020
Context and main message
- Publication date: January 20, 2020
- Event: World Economic Outlook Press Conference, Davos
- Core summary phrase: "Tentative Stabilization, Sluggish Recovery."
- Overall assessment:
- After a synchronized slowdown in 2019, the IMF expects a moderate pickup in global growth this year and next.
- Recent data suggest trade and industrial output are bottoming out, but a turning point has not yet been reached.
- October projections for 2019, 2020 and 2021 have been revised slightly downwards.
- Global growth remains sluggish, making it harder for countries to boost incomes and living standards.
- High uncertainty persists due to trade tensions, geopolitical developments in the Middle East, and climate shocks in Australia and parts of Africa.
Key numeric findings and factual points
- Monetary policy contribution:
- Monetary easing added an estimated 0.5 percentage point to global growth in 2019.
- There were 71 rate cuts by 49 central banks as part of the most synchronized monetary easing since the global financial crisis.
- Timeframes and references:
- References to years and decades: 2019; 2020; 2021; the beginning of the 2020s; comparison to the 1920s.
- Notable quotations and phrasing preserved:
- Two-word October summary: “synchronized slowdown”
- Four-word current summary: “ Tentative Stabilization, Sluggish Recovery.”
- Leo Tolstoy: “ All the variety, all the charm, all the beauty of life is made up of light and shadow .”
Three New Year’s resolutions for policymakers (policy recommendations)
- First — keep doing what works
- Continue monetary support where appropriate, recognizing its material contribution to growth.
- Acknowledge that monetary policy alone is insufficient; where fiscal space exists, countries should use fiscal measures.
- Second — focus on boosting resilience and potential growth
- Use fiscal tools more systematically and step up economic and financial reforms, for example:
- Lowering barriers to entry in service sectors.
- Balancing the benefits and risks of fintech.
- Enhance resilience by:
- Deploying macroprudential tools where financial vulnerabilities are building up.
- Using financial policies to help reduce economic inequality.
- Building resilience to climate risks and seizing opportunities from the transformation to a low-carbon economy.
- Third — be ready to act if growth slows again
- Keep well-planned fiscal measures in reserve—projects that can quickly get off the ground.
- If risks materialize, consider coordinated fiscal responses across countries.
Strategic outlook for the decade
- The start of the 2020s resembles the 1920s in some respects: high economic inequality, rapid spread of new technologies, and large risks and rewards from finance.
- Stronger cooperation within and across nations is needed to manage rapid change and avoid past mistakes.
- Call to action: work together to "bring more light and dispel the shadows" as a shared New Year’s resolution.
Logistics and closing
- Press officer: Raphael Anspach
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Closing remark from the Managing Director: with that, she turns the briefing over to Gita Gopinath and her deputy, Gian Maria.
Source: Opening Remarks by Managing Director Kristalina Georgieva at the World Economic Outlook Press Conference, Davos (January 20, 2020).