Development Committee: The Managing Director's Written Statement April 2024
Policy Papers, May 17, 2024
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- Development Committee: The Managing Director's Written Statement April 2024
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Bibliographic details
- Published: May 17, 2024
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798400275753.007
Summary
- The global economy has been resilient and appears headed for a soft landing.
- Inflation continues to recede and risks have become more balanced globally.
- Medium-term growth prospects remain at the lowest level in decades.
- The outlook for low-income developing countries (LIDCs) is improving, but risks are tilted to the downside.
- The pace of convergence toward higher living standards has slowed, making it increasingly challenging to achieve the Sustainable Development Goals (SDGs).
- Multilateral cooperation is key to enhancing the resilience of the global economy in a more shock-prone world.
Macro outlook and inflation dynamics
- Global trajectory: resilient economy, appearing headed for a soft landing.
- Inflation: continues to recede; completion of the disinflation process should not be taken for granted.
- Central bank guidance in the "last mile of disinflation":
- Ensure that inflation moves durably to target.
- Neither ease policies prematurely nor delay too long and risk causing target undershoot.
Growth, convergence, and development challenges
- Medium-term growth prospects: at the lowest level in decades.
- Convergence toward higher living standards: pace has slowed.
- Implication: increasingly challenging to achieve the Sustainable Development Goals (SDGs).
- LIDC outlook: improving, but downside risks remain.
Fiscal and structural policy priorities
- Fiscal policy:
- Need to rebuild budgetary room.
- Ensure debt sustainability.
- Structural priorities:
- Foster faster productivity growth.
- Facilitate the green transition to improve long-term growth prospects.
Role of multilateral cooperation
- Multilateral cooperation is essential to enhance global resilience in a world that is more prone to shocks.
International Monetary Fund. Strategy, Policy, & Review Department "Development Committee: The Managing Director's Written Statement April 2024", Policy Papers 2024, 027 (2024), May 17, 2024.
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- Policy Paper