Washington : As the world approaches the third year of the Covid-19 pandemic, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has urged for increased policy agility and global cooperation to negotiate an economic "obstacle course."
"The (global) recovery is still going strong, but it has slowed down," Georgieva said at a virtual media roundtable with reporters. "We're particularly concerned about the increased uncertainty that lies ahead." Georgieva stated that there are "three big barriers" on the way to global recovery: the pandemic, growing inflation, and excessive levels of debt.
"We need to be like tigers this year to deal with the complex problems ahead, and policy agility is certainly top of mind," he added, alluding to the Chinese New Year of the Tiger, which began on Tuesday.
"Policy actions should be adjusted to country's individual circumstances," the IMF chief added, citing varied levels of inflation and debt as well as different policy space in different nations.
Georgieva's comments come after the International Monetary Fund (IMF) forecasted global growth of 4.4% in 2022, down 0.5 percentage point from its October 2021 prediction, as economies cope with supply disruptions, increased inflation, record debt, and chronic uncertainty.
She advised central bank officials to strike a delicate balance between managing inflation and safeguarding the economy's recovery, noting that some central banks have taken steps to provide clear forward guidance on when monetary policy support will be withdrawn.