IMF chief: India emerging as one of key drivers of global economic growth

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), outlined new trends in the global economy, according to the organisation’s official website. In her address ahead of the IMF and World Bank Annual Meetings, she highlighted India’s growing role in driving global progress.

According to Georgieva, in the medium term the global economy is expected to grow more slowly than projected before the pandemic – around 3 per cent compared with the previous estimate of 3.7 per cent. At the same time, the IMF head emphasised that India is becoming one of the main engines of global growth.

During her speech, Georgieva presented three medium-term economic policy priorities for all IMF member states: increasing labour productivity, managing public finances prudently, and reducing trade and financial imbalances.

For Asian countries, she underlined the importance of deepening regional integration. According to IMF estimates, lowering non-tariff barriers could contribute an additional 1.8 per cent to GDP growth in the long term.

For Sub-Saharan African nations, the IMF stressed the need for reforms to improve the business climate alongside the development of the African Continental Free Trade Area (AfCFTA). The organisation noted that such a strategy could increase GDP per capita in the region by more than 10 per cent on average.

Georgieva’s address took place during the IMF’s Annual Meetings, where the outlook for global economic development and policy recommendations for member countries are discussed.

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