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IMF urges rebuilding fiscal buffers during ‘soft landing’

Date: July 14, 2024 Time: 14:42:35

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has assured that it will be necessary to rebuild the reserves that have been depleted during successive crises to improve “the landing zone” in order to achieve an adequate soft landing of the economy. . world

The Bulgarian economist stressed during a press conference this Thursday that growth has been positive despite the complications and tensions due to the pandemic or geopolitical conflicts, in addition to the tightening of fiscal conditions. In fact, Georgieva highlights that the financial institution has raised its growth forecast for this year, reaching 3.2%.

Despite the improvement in expectations, the economist has stressed that there are still risks and it is important to pay attention to their possible consequences. Concerns for the world economy have included differences in the level of recovery between countries and inflation, “which has gone down but has not disappeared.”

Urges to reduce deficits

In this context, for Georgieva, firm measures are needed “to strengthen the landing zone” and achieve lasting prosperity for all, pointing out as key priorities the reconstruction of fiscal reserves that have been depleted by the crises, as well as the reactivation of social growth. . sustainable and inclusive in the medium term; and the IMF’s renewed commitment to ensuring that its lending policies and toolkit remain fit for purpose.

To this end, it has invited countries to shift their focus towards medium-term fiscal consolidation to reduce deficits and ensure debt sustainability, underlining that differences between countries require carefully tailored policies, as the pace of adjustment should calibrate. to strike a balance between fiscal risks and strength of private demand to avoid undermining growth and support for reforms.

“Countries must urgently develop fiscal resilience to be prepared for the next ‘shock’,” defended the IMF director, although she warned that “one size fits all” does not fit all and the speed of consolidation varies according to the circumstances of each country. Likewise, the Bulgarian has advertising.

“In a world of increasingly frequent crises, we know that we will be tested again,” warned Georgieva, who, quoting former British Prime Minister Winston Churchill, stated that “this is not the time for tranquility and comfort. It is time “To dare and endure.”

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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