{
  "title": "Development Committee: The Managing Director's Written Statement October 2022",
  "publication": "Policy Papers, October 14, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2022/10/15/development-committee-the-managing-director-s-written-statement-october-2022-524862",
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  "summary": "Several simultaneous shocks are weighing on the global economic outlook and complicate policymaking. Inflationary pressures are on the rise and increasingly broad based.",
  "sections": [
    {
      "heading": "Global outlook and simultaneous shocks",
      "content": "- Several simultaneous shocks are weighing on the global economic outlook and complicate policymaking.\n- Inflationary pressures are on the rise and increasingly broad based.\n- Russia’s war in Ukraine continues to send shockwaves through the global economy, including by disrupting commodity markets and contributing to higher sovereign risk spreads.\n- Lower growth in China as a result of lockdowns and a weaker housing market curtails global demand.\n- Climate change is generating increasingly costly extreme weather events.\n- The combination of lower growth and high prices squeezes household budgets."
    },
    {
      "heading": "Impact on households and Emerging and Developing Economies (EMDEs)",
      "content": "- Households in low-income developing countries (LIDCs) are especially squeezed where hard-to-replace spending items, such as food, account for a large share of consumption.\n- EMDEs need to cope with less favorable financial conditions and weaker currencies that raise the domestic currency value of foreign debt.\n- These factors create a constellation that contains potential for wider debt distress."
    },
    {
      "heading": "Policy trade-offs and priorities",
      "content": "- Central banks face difficult policy trade-offs, as both over- and under-tightening the monetary stance would come with significant costs.\n- Policymakers should focus on:\n  - Gaining control over inflation,\n  - Preserving financial stability,\n  - Using focused and well-targeted fiscal interventions to support those most in need."
    },
    {
      "heading": "Global cooperation and risks",
      "content": "- Global cooperation is more important than ever.\n- Geopolitical developments pose an acute threat to global cooperation.\n\nDevelopment Committee: The Managing Director's Written Statement October 2022\n\n---\n\n Content in this bundle\n\n- Policy Paper\n  - Policy Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2022/10/15/development-committee-the-managing-director-s-written-statement-october-2022-524862"
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    "Published: October 14, 2022",
    "Series: Policy Papers",
    "DOI: https://doi.org/10.5089/9798400221491.007",
    "Several simultaneous shocks are weighing on the global economic outlook and complicate policymaking.",
    "Inflationary pressures are on the rise and increasingly broad based.",
    "Russia’s war in Ukraine continues to send shockwaves through the global economy, including by disrupting commodity markets and contributing to higher sovereign risk spreads.",
    "Lower growth in China as a result of lockdowns and a weaker housing market curtails global demand.",
    "Climate change is generating increasingly costly extreme weather events.",
    "The combination of lower growth and high prices squeezes household budgets.",
    "Households in low-income developing countries (LIDCs) are especially squeezed where hard-to-replace spending items, such as food, account for a large share of consumption.",
    "EMDEs need to cope with less favorable financial conditions and weaker currencies that raise the domestic currency value of foreign debt.",
    "These factors create a constellation that contains potential for wider debt distress.",
    "Central banks face difficult policy trade-offs, as both over- and under-tightening the monetary stance would come with significant costs.",
    "Policymakers should focus on:",
    "Global cooperation is more important than ever.",
    "Geopolitical developments pose an acute threat to global cooperation.",
    "**Policy Paper**"
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