{ "title": "IMF Managing Director Kristalina Georgieva Urges G20 Leadership to Address ‘Exceptionally Uncertain’ Global Outlook", "publication": "IMF News, July 16, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/07/16/pr22261-md-g20-statement", "canonical": "https://www.imf.org/en/news/articles/2022/07/16/pr22261-md-g20-statement", "overlayPath": "/en/news/articles/2022/07/16/pr22261-md-g20-statement/index.md", "summary": "IMF Managing Director Kristalina Georgieva Urges G20 Leadership to Address ‘Exceptionally Uncertain’ Global Outlook", "publishDate": "2022-07-16", "sections": [ { "heading": "Context and key observations", "content": "- Press Release No. 22/261; July 16, 2022; Bali, Indonesia.\n- Speaker: International Monetary Fund Managing Director Kristalina Georgieva at the hybrid meeting of the G20 Finance Ministers and Central Bank Governors.\n- Core assessment: “The outlook has darkened significantly, and uncertainty is exceptionally high. Downside risks about which the IMF had previously warned have now materialized.”\n- Drivers of the worsened outlook:\n - The war in Ukraine has intensified, exerting added pressures on commodity and food prices.\n - Global financial conditions are tightening more than previously anticipated.\n - Continuing pandemic-related disruptions and renewed bottlenecks in global supply chains are weighing on economic activity.\n- Near-term projection action: “As a result, later this month we will project a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update.”" }, { "heading": "Immediate economic risks and impacts", "content": "- Inflation risk: If inflation is more persistent, downside risks could deepen, “requiring even stronger policy interventions which could potentially impact growth and exacerbate spillovers particularly to emerging and developing countries.”\n- Debt stress:\n - “More than 30 percent of emerging and developing countries are at or near debt distress.”\n - “For low-income countries that number is 60 percent.”\n - “With tightening financial conditions and exchange rate depreciations, the debt service burden is a harsh – and for some countries – unbearable burden.”\n- Capital flows: Emerging and developing countries have experienced sustained capital outflows “for four months in a row,” risking reversal of “three decades of catching up with advanced economies.”\n- Country example: “Look no further than Sri Lanka as a warning sign.”" }, { "heading": "Policy priorities recommended by the IMF Managing Director", "content": "- Three priority areas to navigate the challenging environment:\n 1. Bring inflation down\n - Rationale: “Failure to do so could risk the recovery and further damage living standards for vulnerable people.”\n - Current stance: “Central banks are stepping up. Monetary policy is increasingly synchronized: more than three-quarters of central banks have raised interest rates and have done so 3.8 times.”\n - Emphasis on: central bank independence, clear communication, and a data-driven approach.\n 2. Use fiscal policy to help, not hinder, inflation control\n - Fiscal objectives: Reduce debt while providing targeted measures to support vulnerable households facing shocks, especially from high energy or food prices.\n - Trade-off: Growth slowing means “some people will need more support, not less.”\n 3. Reinvigorate global cooperation\n - Priority areas: food insecurity and high debt.\n - Food security actions called for: support those in immediate need, remove export restrictions, promote food production, and invest in climate-resilient agriculture.\n - Collective initiatives: progress on SDR channeling and operationalizing new IMF instruments." }, { "heading": "Institutional and multilateral measures urged", "content": "- Common Framework (CF) for debt:\n - Need for CF to “deliver on its promise.”\n - Encouragement: “the three creditor committees for Chad, Ethiopia, and Zambia are meeting this week.”\n - Calls for action: “New rules and timelines should be established for the CF. And it is important to expand coverage to non-DSSI countries.”\n - Urgency: “I urge the G20 to come together on a way forward and to do so swiftly. The debt situation is deteriorating fast and a well-functioning mechanism for debt resolution should be in place.”\n- Special Drawing Rights (SDRs):\n - Support for making progress on SDR channeling “to amplify the effect of the IMF’s recent US$650 billion SDR allocation.”\n- Resilience and Sustainability Trust (RST):\n - Acknowledgement: G20 helped establish the IMF’s newest instrument—the RST—with “close to US$40 billion in pledges.”\n - Call to action: “Now is the time to turn those pledges into actual contributions for the new Trust to be operational by the Annual Meetings in October.”\n- Poverty Reduction and Growth Trust:\n - Recognition: G20 members have pledged loan resources of “nearly SDR 8 billion (US$10.5 billion) – about three-quarters of what is needed.”\n - Expectation: “I am confident that additional pledges will be made soon.”" }, { "heading": "Climate and energy transition", "content": "- Climate urgency: “We cannot lose sight of the most pressing crisis of all: climate change.”\n- Recommendations:\n - Scale up financial resources for the climate transition.\n - Provide clear policy signals from national governments to decarbonize economies.\n - Leverage easing energy prices as an opportunity to “accelerate carbon pricing or equivalent measures.”" }, { "heading": "Closing and IMF engagement", "content": "- The IMF will continue to support the G20 on the identified priorities.\n- Forward-looking engagement: “I look forward to our next meeting in October.”\n\nInternational Monetary Fund. Press Release No. 22/261; July 16, 2022.\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Indonesia and the IMF\n- Sri Lanka and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/07/16/pr22261-md-g20-statement" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/07/16/pr22261-md-g20-statement/index.md)", "[Structured JSON version](/en/news/articles/2022/07/16/pr22261-md-g20-statement/index.json)", "[Bundle manifest](/en/news/articles/2022/07/16/pr22261-md-g20-statement/bundle-manifest.json)", "Published: July 16, 2022", "Press Release No. 22/261; July 16, 2022; Bali, Indonesia.", "Speaker: International Monetary Fund Managing Director Kristalina Georgieva at the hybrid meeting of the G20 Finance Ministers and Central Bank Governors.", "Core assessment: “The outlook has darkened significantly, and uncertainty is exceptionally high. Downside risks about which the IMF had previously warned have now materialized.”", "Drivers of the worsened outlook:", "Near-term projection action: “As a result, later this month we will project a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update.”", "Inflation risk: If inflation is more persistent, downside risks could deepen, “requiring even stronger policy interventions which could potentially impact growth and exacerbate spillovers particularly to emerging and developing countries.”", "Debt stress:", "Capital flows: Emerging and developing countries have experienced sustained capital outflows “for four months in a row,” risking reversal of “three decades of catching up with advanced economies.”", "Country example: “Look no further than Sri Lanka as a warning sign.”", "Three priority areas to navigate the challenging environment:", "Common Framework (CF) for debt:", "Special Drawing Rights (SDRs):", "Resilience and Sustainability Trust (RST):", "Poverty Reduction and Growth Trust:", "Climate urgency: “We cannot lose sight of the most pressing crisis of all: climate change.”", "Recommendations:", "The IMF will continue to support the G20 on the identified priorities.", "Forward-looking engagement: “I look forward to our next meeting in October.”", "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)", "[Indonesia and the IMF](http://www.imf.org/external/country/IDN/index.htm)", "[Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/index.htm)", "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2022/07/16/pr22261-md-g20-statement/index.md", "json": "/en/news/articles/2022/07/16/pr22261-md-g20-statement/index.json", "bundleManifest": "/en/news/articles/2022/07/16/pr22261-md-g20-statement/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:25:10.324Z" }