## Transcript of G24 October 22 Press Briefing _IMF News, October 22, 2024_ ## Source details **Canonical URL:** [Transcript of G24 October 22 Press Briefing](https://www.imf.org/en/news/articles/2024/10/22/tr-102224-transcript-of-g24-press-briefing) ## Other formats - [Markdown version](/en/news/articles/2024/10/22/tr-102224-transcript-of-g24-press-briefing/index.md) - [Structured JSON version](/en/news/articles/2024/10/22/tr-102224-transcript-of-g24-press-briefing/index.json) - [Bundle manifest](/en/news/articles/2024/10/22/tr-102224-transcript-of-g24-press-briefing/bundle-manifest.json) ## Bibliographic details - Published: October 22, 2024 --- ### Opening assessment of global outlook and vulnerabilities - Global economy: "shows signs of stabilization" but "the outlook for many vulnerable nations, particularly in the global south, remains bleak." - Key risks highlighted: conflicts and humanitarian crises; rising geopolitical tensions; threat of commodity price spikes; elevated interest rates; impaired capital flows and fiscal stability. - Developmental target: sustainable and inclusive future by 2030 remains possible "with the right priorities and concerted international cooperation." - Institutional call: "a more agile and strong will IMF and World Bank" and "heightened development cooperation, scale‑up support, and innovative solutions." ### Four key G‑24 reform priorities for the Bretton Woods system - 1) "The IMF must create a new mechanism to support countries with sound fundamentals during liquidity crisis." - 2) "The World Bank needs more ambitious goals for its concessional and non‑concessional windows" to help "eradicating poverty on a livable planet" and achieve inclusive and sustainable development by 2030. - 3) Reform the sovereign debt resolution framework to deliver "comprehensive, predictable, swift, and impactful debt relief" for vulnerable economies. - 4) "Accelerate governance and institutional reforms of the Bretton Woods Institutions, to increase the voice and representation of developing nations." ### Philippines: growth drivers, fiscal posture, and technology risk - Growth and fiscal targets: - "At the second quarter grew by roughly 6.3 percent." - "For the first 2 years of this administration, we have grown about 6 percent." - Current debt level: "Today are roughly at 60 percent." - Target debt: "We expect the good debt‑to‑GDP to be way below 60 percent by 2028." - Expenditure and composition: - "Spending roughly 5 to 6 percent on infrastructure, maybe a similar amount also for human resource development, particularly in health and education." - "70 percent of the economy is household consumption." - External and sectoral figures: - Business process outsourcing (BPO) revenues: "we collect roughly 35 billion in revenues a year." - Remittances: "a robust remittance of roughly the same amount, about $35 billion a year as well." - Technology risk: AI is "a challenge" but "the BPO industry is already adapting to AI." ### Nigeria: liquidity, foreign‑exchange supply, inflation, and reforms - Liquidity and FX constraints: - Liquidity constraints, especially foreign exchange, impair debt servicing (foreign and domestic). - Key remedy: increase oil production to raise foreign exchange supply and reduce pressure on the naira when large flows occur. - Monetary policy and inflation: - With double‑digit inflation, the Central Bank of Nigeria is "continuing with monetary tightening." - On single‑digit interest rates: acknowledged as unlikely in the near term given current inflation and hawkish monetary policy stance. - Structural reform guidance: - Reforms should be accompanied by social safety nets to cope with frontloaded costs and spikes in cost‑of‑living. - Clear communication and transparency (e.g., published dashboards for direct transfers) are critical to build public trust. - Engagement with multilateral support: - The IMF can provide "bridge financing" for countries with sound fundamentals to allow time for adjustment. ### Argentina: fiscal anchoring and education spending context - G‑24 view: need for emerging market and developing economies to "put their economies in the right place" and access liquidity from international financial organizations. - On the vetoed education financing bill: described as an effort to "keep the budget where it has to be" and "evaluating costs and expenditure in the right way," not as cutting education. ### Sovereign debt architecture and middle‑income countries - Concern: Common Framework currently applies only to low‑income countries. - G‑24 proposal: a forum where middle‑income countries can negotiate with creditors—reference to "Sovereign Debt Resolution Roundtable" but emphasizing need for a mechanism that delivers timely, comprehensive debt reduction for both middle and low‑income countries. - Aim: "very timely, very comprehensive reduction in debt" so countries like Sri Lanka, Lebanon, and others can benefit. ### Trade, multilateralism, and U.S. election risks - Risk of rising protectionism and reversal of globalization; concern about setback for multilateralism and trade. - G‑24 call: strengthen the WTO as "the center of trade discussions" and for "the World Bank and the IMF to rise up to a much more multilaterally‑engaged organization." - Specific regional note: African Growth and Opportunity Act cited as unlikely to be affected by U.S. election outcomes. ### Climate change and multilateral development banks (MDBs) - Consensus: current MDB financing is "not commensurate with the level of ambition" needed to tackle climate change. - Developing‑country perspective: - Need to respect emerging markets' "right to develop first" and ensure financing for development priorities not directly linked to climate mitigation. - For fossil‑fuel‑endowed developing countries (e.g., Nigeria), a "realistic approach" is required to use resources to industrialize while meeting Paris Accord commitments. ### Inflation outlook, concessional financing, and reform timelines - Global inflation outlook noted: "for next year, the global inflation rate will still be relatively high, lower than this year, but something like 5.8 percent, thereabouts." - Policy implication: elevated interest rates will remain a concern for developing countries; G‑24 calls for lower cost of borrowing from the World Bank and larger concessional financing (e.g., IDA). - IMF policy change cited: "The IMF has reduced their charges. 36 percent reduction in the rates and the excess charges." - Timeline for Bretton Woods reforms: consultations underway; minimum expectation of an update "by next Spring Meeting" and possible final decisions by the Annual Meetings, with subsequent board ratification required. ### Practical recommendations and implementation lessons - For structural reform programs: - Design and fund social safety nets proactively to protect the poor and vulnerable from frontloaded costs. - Prioritize transparent communication of reform steps, timing, and beneficiary delivery (e.g., dashboards). - For international institutions: - Create liquidity support mechanisms for countries with sound fundamentals facing crises. - Expand concessional and non‑concessional World Bank windows to match development and climate challenges. - Reform sovereign debt resolution frameworks to be comprehensive and inclusive of middle‑income countries. - Accelerate governance reform to increase developing country voice and representation. *Source: Transcript of G24 October 22 Press Briefing, October 22, 2024, IMF Communications Department.* --- ## References - [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm) - [Nigeria and the IMF](http://www.imf.org/external/country/NGA/index.htm) - [Philippines and the IMF](http://www.imf.org/external/country/PHL/index.htm) - [Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/index.htm) - [Transcripts](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) _Source: https://www.imf.org/en/news/articles/2024/10/22/tr-102224-transcript-of-g24-press-briefing_