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Message from the Managing Director

Dear Reader,

The global economy is facing its biggest test since World War II.

Over the past year, the ongoing pandemic has continued to exact an enormous health and socioeconomic toll, affecting lives and livelihoods everywhere. In the midst of the nascent recovery, the world is facing a second, unprecedented shock: Russia’s invasion of Ukraine. Millions of refugees have fled the fighting. Millions more remain internally displaced.

The economic consequences continue to reverberate. Soaring food and energy prices and broader inflation are hitting the most vulnerable the hardest—just as high debt and tightening global financial conditions make it even more difficult for governments to support them. In addition, there is a sharply increased risk of the world fragmenting into geopolitical and economic blocs that could reverse decades of gains in living standards. And there is no pause button on the climate crisis while we deal with these other crises.

The IMF is working to help our members address these challenges and keep moving forward on an increasingly difficult road to recovery.

Last year, our membership approved a historic $650 billion allocation of the IMF’s Special Drawing Rights to strengthen countries’ reserves, helping to provide much-needed liquidity support to countries worldwide.

Building on this achievement, we began the process of reforming our financing support, starting with efforts to boost the size of our concessional lending for low-income countries. This year, our members also agreed to launch the Resilience and Sustainability Trust—our first facility providing long-term affordable financing—to help our more vulnerable members build resilience against climate shocks and future pandemics.

Since the start of the pandemic, the IMF has approved $258 billion in new financing to 93 countries. We are now extending that support to those most heavily affected by the latest set of shocks.

This Annual Report emphasizes the work of the IMF’s Executive Board, whose guidance and oversight are essential. It also highlights the real-time advice, capacity development, and support the Fund has provided to our members.

Working together is the only way we can successfully address the challenges we face. Our member countries can count on us to nurture collective action for a strong and inclusive economy.

Part One

In Focus