Opening Remarks by First Deputy Managing Director Gita Gopinath at the IMF Economic Review Conference on Transformational Recovery: Seizing Opportunities from the Crisis

IMF News, June 23, 2022

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Canonical URL: Opening Remarks by First Deputy Managing Director Gita Gopinath at the IMF Economic Review Conference on Transformational Recovery: Seizing Opportunities from the Crisis

Speaker: Gita Gopinath, First Deputy Managing Director.
Event: IMF Economic Review Summer Conference, jointly organized by Bank Al-Maghrib and the IMF.
Location and date: Rabat, Morocco; June 23, 2022.
Remarks convey both immediate crisis assessment and emphasis on medium- and long-term structural policies for emerging and developing economies.

Pandemic resurgence and renewed surges of the virus.
Russia’s invasion of Ukraine and escalated sanctions.
High and broadening inflation beyond energy and food commodity prices.
Recent strict lockdown measures in China causing additional growth drag and supply-chain disruptions.
IMF April downgrade of global growth projections to 3.6 percent for both 2022 and 2023.
Bottom line articulated: global growth is likely to be lower than expected, while inflation is higher.

Pandemic impact on poverty: estimated additional 75 million people pushed into extreme poverty in 2021 relative to pre-pandemic trends.
High food prices and supply disruptions—exacerbated by the war in Ukraine—have significantly worsened outcomes for the poor.
Regional food insecurity vulnerability noted: in the Middle East and Africa, food accounts for 40 percent of consumers’ spending.

Worsening of the situation in Ukraine: higher human and economic costs and increased global fragmentation.
Higher-than-expected inflation: intensification of the cost-of-living crisis and potential for inflamed social tensions.
Associated tighter global financial conditions: added strain from high debt levels.
More protracted growth slowdown in China: further downward pressure on global activity.

Risk that current shocks could leave long-term scars, reducing growth for years—particularly for emerging and developing economies with limited policy space and lower vaccination rates.
Need to preserve focus on medium- and long-term structural issues even amid immediate crises.
Structural themes for policy and research emphasis at the conference: structural transformation, trade, inequality, climate change, and related topics.

Emphasis on collaborative efforts among scholars and policymakers to identify problems and find solutions.
Importance of building resilience and pursuing a transformational recovery that strengthens future potential.
Anticipation of continued collaboration, including the 2023 Annual Meetings in Marrakesh, as a venue to deepen partnerships.

Opening Remarks by First Deputy Managing Director Gita Gopinath, Rabat, Morocco; June 23, 2022.