STORY: Global economy in danger of getting stuck on low-growth high-debt path: IMF
SHOOTING TIME: Oct. 24, 2024
DATELINE: Oct. 25, 2024
LENGTH: 00:02:37
LOCATION: Washington D.C.
CATEGORY: ECONOMY

SHOTLIST:
1. SOUNDBITE 1 (English): KRISTALINA GEORGIEVA, IMF Managing Director
2. SOUNDBITE 2 (English): KRISTALINA GEORGIEVA, IMF Managing Director
3. various of Xinhua News Agency correspondent asking questions
4. SOUNDBITE 3 (English): KRISTALINA GEORGIEVA, IMF Managing Director
5. various of the press conference

STORYLINE:

The International Monetary Fund (IMF) warned on Thursday that the global economy is in danger of getting stuck on a low-growth high-debt path, urging policymakers to act on debt and carry out pro-growth reforms.

IMF Managing Director Kristalina Georgieva made the remarks at a press conference during the 2024 IMF and World Bank Group Annual Meetings.

SOUNDBITE 1 (English): KRISTALINA GEORGIEVA, IMF Managing Director
"The global economy is in danger of getting stuck on a low-growth high-debt path. That means lower incomes and fewer jobs. It also means lower government revenues, so less investment to support families and fight long-term challenges like climate change."

Georgieva called on policymakers to ensure that inflation gets back to target everywhere.

SOUNDBITE 2 (English): KRISTALINA GEORGIEVA, IMF Managing Director
"First, ensure that inflation gets back to target everywhere. The trick now (for central banks) is to finish the job of inflation without unnecessarily damaging the job market. Second, now is the time to act on debt and deficits after years of much-needed fiscal support in response shots. Now is the time to rebuild fiscal buffers. In most countries that can be done gradually, but it needs to start now. Third and most important, it is crucial that countries carry out pro-growth reforms from cutting red tape to improving governance. Our analysis shows that these reforms can boost output by up to 8 percent over four years in developing countries."

In the latest World Economic Outlook (WEO) released on Tuesday, the IMF maintained its global growth forecast for 2024 at 3.2 percent, consistent with its projection in July. Growth prospects for five years from now remain lacklustre, at 3.1 percent, the lowest in decades.

Advanced economies are projected to grow by 1.8 percent this year, while emerging market and developing economies will grow 4.2 percent.

In response to a question from Xinhua, Georgieva said at the press conference that the IMF will have to carefully assess the measures recently announced by Chinese authorities to be able to determine what exactly is the likely impact, while noting that "there are measures that go in the right direction."

SOUNDBITE 3 (English): KRISTALINA GEORGIEVA, IMF Managing Director
"We will have to carefully assess the measures to be able to determine what exactly is the likely impact. What I can say is twofold, one that there are measures that go in the right direction. China for quite some time has been faced with a fork on the road: continue with the export-led growth policies or boost domestic consumption, and shift the growth engine to Chinese consumers. We are of the view that as the Chinese economy has grown so big, it is the latter, domestic consumption that is the reliable source of growth."

Xinhua News Agency correspondents reporting from Washington D.C.
(XHTV)