Message from the Managing Director
Amid rising global inequality and slowing growth, the IMF calls for bold, cooperative policy shifts to unlock opportunity, support vulnerable nations, and ensure the global economic system remains resilient, inclusive, and fit for the future.
Dear Reader,
The global economy of the last 12 months has been defined by change. Huge transformations including digitalization, artificial intelligence, and demographic transitions are underway. On top of this, major policy shifts are reshaping global trade and capital flows.
While the global economy has been resilient in the face of successive shocks over recent years, the outlook remains tepid. The five-year-ahead global growth forecast stands at around 3 percent, well below the post-war expansion average of 3.7 percent. We continue to confront a low growth/high debt outlook.
Against this background, the IMF’s members face significant challenges. Among them are the need to preserve macroeconomic and financial stability, ensure debt sustainability, address excess imbalances that exist between countries, and lift growth prospects.
The path to achieving these goals requires urgent and substantial policy measures. This starts at home and countries can do much to get their own house in order. They can boost productivity and strengthen domestic growth; restore fiscal buffers to provide space for much-needed investment and in preparation for future shocks; and enhance financial stability and build resilience.
Looking beyond their own borders, countries should pursue cooperative solutions to shared economic challenges.
In the context of an evolving economic landscape, the Fund will continue to support its members. It will adapt as necessary to help countries navigate these challenging times and address imbalances.
The Fund provides this support from a position of strength. Not only does it maintain a robust balance sheet, but it has also exceeded its target for precautionary reserves which act as a financial buffer for the institution.
Over the past year, our Executive Board has taken important decisions to ensure that the IMF remains a strong, responsive partner. These include maintaining elevated access limits to provide adequate financial support to countries facing persistent shocks—a measure first introduced during the pandemic.
As part of our determination to exercise fiscal responsibility, we have advanced critical reforms to the Poverty Reduction and Growth Trust to bolster our capacity to support the most vulnerable countries while ensuring the Trust’s self-sustainability.
We have also updated our Charges and Surcharge Policy. This change will reduce borrowing costs for our members by an estimated $1.2 billion annually while at the same time maintaining the IMF’s capacity to further strengthen its own financial buffers. These steps reflect our commitment to serve all our members—with flexibility, responsibility, and fairness.
Times change, but we remain focused on our core mission: to help establish the conditions for macroeconomic strength and stability including through the promotion of durable growth, while achieving price and financial stability.
The state of change increases the challenge of good policymaking, but in challenge there is opportunity. We should seize this moment. With the right policy choices, a better balanced, more sustainable and prosperous world is within reach.
Kristalina Georgieva
Managing Director
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