{
  "title": "The Path to Growth",
  "publication": "IMF News, April 13, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth",
  "canonical": "https://www.imf.org/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth",
  "overlayPath": "/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/index.md",
  "summary": "The Path to Growth: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director",
  "publishDate": "2023-04-13",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Speech: \"The Path to Growth: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director\"\n- Location and date: Washington, DC, April 13, 2023\n- Key framing: world economy resilient to multiple shocks but facing a combination of weak growth and sticky inflation; \"the weakest medium-term forecast in decades.\""
    },
    {
      "heading": "Global outlook and risks",
      "content": "- World Economic Outlook projection: global growth to slow down to 2.8 percent in 2023 and remain weak, at around 3 percent, over the next five years.\n- Underlying inflation \"remains stubbornly high.\"\n- Geo-economic fragmentation affects trade and capital flows; downsides risks have increased.\n- Recent banking sector pressures have made fighting inflation and safeguarding financial stability more complex.\n- Low-income countries face high debts and lagging per capita income growth, making convergence harder."
    },
    {
      "heading": "Three priorities on the path to growth",
      "content": "- Restore price stability and safeguard financial stability\n  - Central banks expected to \"stay the course in the fight against inflation—holding a tight stance to prevent a de-anchoring of inflation expectations.\"\n  - Fiscal policy: \"Further effort to reduce budget deficits is critical to support the fight against inflation and reduce debt, but this must be coupled with targeted support for the most vulnerable.\"\n  - Financial stability: central banks should address risks where they emerge, coordinating with regulators and supervisors; monitor risks in banks, non-bank financial institutions, and sectors such as commercial real estate.\n- Rebuild the foundation to sustain future prosperity by advancing structural transformations and countering fragmentation\n  - Priorities: accelerate the digital revolution, improve the business environment, boost human capital and inclusion, and pursue the green energy transformation.\n  - Investment need: \"An estimated $1 trillion a year is needed for renewable energy alone.\"\n  - Costs of fragmentation: long-term cost of trade fragmentation could be as high as 7 percent of global GDP; \"If we add technological decoupling, some countries could lose up to 12 percent of GDP.\"\n  - Fragmentation of capital flows, including foreign direct investment, would further hit global growth.\n- Solidarity with the most vulnerable countries\n  - IMF financing since the start of the pandemic: \"nearly $300 billion in new financing for 96 countries—more than half our members.\"\n  - Recent approvals: \"Just in the six months since our Annual Meetings our Board has approved 23 new arrangements.\"\n  - \"Nearly half of our financing commitments in the past three years have been done through our precautionary facilities—like the one approved for Morocco last week.\"\n  - Support has been stepped up for vulnerable middle-income countries, including through a temporary increase in the amount members can borrow from the IMF.\n  - Recent financing to countries such as Sri Lanka and Ukraine.\n  - New tools: Food Shock Window (helps cope with economic consequences of Russia’s war in Ukraine) and the Resilience and Sustainability Trust (focused on long-term challenges such as climate change).\n  - RST uptake: \"Five countries are already benefitting from RST support, with many more in the pipeline.\""
    },
    {
      "heading": "IMF-led multilateral efforts and debt treatment",
      "content": "- Global Sovereign Debt Roundtable (co-chaired by IMF, the World Bank, and India as G20 Chair) is advancing restructuring cases, including under the G20’s Common Framework.\n  - Recent outcomes:\n    - Agreement to improve information sharing on macroeconomic projections and debt sustainability assessments at an early stage in the debt restructuring process.\n    - Common understanding on the role that MDBs can play, \"notably through the provision of positive net flows of concessional finance.\"\n    - Decision to pursue a workstream, including a workshop in the next weeks, on how to assess and enforce comparability of treatment."
    },
    {
      "heading": "Resource needs and recent pledges",
      "content": "- Appeal for PRGT funding: called for \"$4.7 billion in loan resources and $1.6 billion in additional subsidy resources to maintain this interest-free support.\"\n- Recent pledges/contributions: \"Ireland, Japan, Portugal, Saudi Arabia and the UK\" have come forward with substantial new pledges or contributions.\n- Call to members to complete the review of quotas \"so that we can continue to strongly fulfill our mission.\""
    },
    {
      "heading": "Closing",
      "content": "- Emphasis on continuing work \"this week, and beyond\" and confidence in overcoming challenges together.\n\nSource: \"The Path to Growth: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director\", Washington, DC, April 13, 2023.\n\n---\n\n\n References\n\n- The Managing Director's Global Policy Agenda, Spring Meetings 2023: Safeguard Economic Stability, Support Vulnerable Countries, Sustain Our Future Prosperity\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Ukraine and the IMF\n- Saudi Arabia and the IMF\n- Sri Lanka and the IMF\n- Speeches\n- PRESS CENTER\n- Spring Meetings\n- World Economic Outlook\n- one approved for Morocco last week\n- Sri Lanka\n- Ukraine\n- Food Shock Window\n- Resilience and Sustainability Trust\n- Global Sovereign Debt Roundtable\n- key players met yesterday\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/index.md)",
    "[Structured JSON version](/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/index.json)",
    "[Bundle manifest](/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/bundle-manifest.json)",
    "Published: April 13, 2023",
    "Speech: \"The Path to Growth: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director\"",
    "Location and date: Washington, DC, April 13, 2023",
    "Key framing: world economy resilient to multiple shocks but facing a combination of weak growth and sticky inflation; \"the weakest medium-term forecast in decades.\"",
    "World Economic Outlook projection: global growth to slow down to 2.8 percent in 2023 and remain weak, at around 3 percent, over the next five years.",
    "Underlying inflation \"remains stubbornly high.\"",
    "Geo-economic fragmentation affects trade and capital flows; downsides risks have increased.",
    "Recent banking sector pressures have made fighting inflation and safeguarding financial stability more complex.",
    "Low-income countries face high debts and lagging per capita income growth, making convergence harder.",
    "Restore price stability and safeguard financial stability",
    "Rebuild the foundation to sustain future prosperity by advancing structural transformations and countering fragmentation",
    "Solidarity with the most vulnerable countries",
    "Global Sovereign Debt Roundtable (co-chaired by IMF, the World Bank, and India as G20 Chair) is advancing restructuring cases, including under the G20’s Common Framework.",
    "Appeal for PRGT funding: called for \"$4.7 billion in loan resources and $1.6 billion in additional subsidy resources to maintain this interest-free support.\"",
    "Recent pledges/contributions: \"Ireland, Japan, Portugal, Saudi Arabia and the UK\" have come forward with substantial new pledges or contributions.",
    "Call to members to complete the review of quotas \"so that we can continue to strongly fulfill our mission.\"",
    "Emphasis on continuing work \"this week, and beyond\" and confidence in overcoming challenges together.",
    "[The Managing Director's Global Policy Agenda, Spring Meetings 2023: Safeguard Economic Stability, Support Vulnerable Countries, Sustain Our Future Prosperity](https://www.imf.org/en/Publications/Policy-Papers/Issues/2023/04/12/The-Managing-Director-s-Global-Policy-Agenda-Spring-Meetings-2023-Safeguard-Economic-531906)",
    "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)",
    "[Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)",
    "[Saudi Arabia and the IMF](http://www.imf.org/external/country/SAU/index.htm)",
    "[Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/index.htm)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Spring Meetings](https://meetings.imf.org/en/2023/Spring)",
    "[World Economic Outlook](https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023)",
    "[one approved for Morocco last week](https://www.imf.org/en/News/Articles/2023/04/03/pr23104-imf-executive-board-approves-two-year-billion-flexible-credit-line-arrangement-for-morocco)",
    "[Sri Lanka](https://www.imf.org/en/News/Articles/2023/03/20/pr2379-imf-executive-board-approves-under-the-new-eff-arrangement-for-sri-lanka)",
    "[Ukraine](https://www.imf.org/en/News/Articles/2023/03/31/pr23101-ukraine-imf-executive-board-approves-usd-billion-new-eff-part-of-overall-support-package)",
    "[Food Shock Window](https://www.imf.org/en/News/Articles/2022/09/29/pr22327-imf-managing-director-creation-new-food-shock-window-help-countries-address-food-insecurity)",
    "[Resilience and Sustainability Trust](https://www.imf.org/en/News/Articles/2022/10/12/pr22348-md-announces-operationalization-of-rst)",
    "[Global Sovereign Debt Roundtable](https://www.imf.org/en/News/Articles/2023/04/12/pr23117-global-sovereign-debt-roundtable-cochairs-press-stmt)",
    "[key players met yesterday](https://www.imf.org/en/News/Articles/2023/04/12/sp041223-md-lics-concessional-financing)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/index.md",
    "json": "/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/index.json",
    "bundleManifest": "/en/news/articles/2023/04/13/sp-041323-md-the-path-to-growth/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T01:59:11.551Z"
}