International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that enhancing regional trade and cooperation in Asia could raise long-term GDP by up to 1.8 percent.
Georgieva made the remarks in a written statement ahead of the IMF’s annual general meeting, set to begin in the United States on Monday (October 13).
She said, “Asian countries should increase trade in final goods and services, and advance reforms to strengthen access in the services and financial sectors. Amid global uncertainties, Asia’s internal connectivity can play a crucial role in ensuring sustainable growth.”
Reflecting on global trends, the IMF chief noted, “When I look at the world over the past few decades, I see unprecedented progress on one hand, and unfulfilled dreams on the other. The average person is in a much better position than 30 years ago, but behind this average improvement lies deep-seated exclusion, discontent, and harsh realities.”
She added, “In many parts of the world, people—especially the youth—are expressing their frustrations in the streets. From Lima to Rabat, Paris to Nairobi, and Kathmandu to Jakarta, they are demanding better opportunities.”
The IMF’s annual general meeting will start in Washington, DC, on Monday, where the organization’s global economic outlook will be discussed. According to reports, world economic growth may slow somewhat this year and next. Despite various shocks and crises, data indicate that the global economy remains generally stable.
Georgieva highlighted four main reasons behind this stability: improved policy frameworks, adaptability of the private sector, lower-than-expected trade impacts, and a supportive financial environment—at least for the time being.
She said, “In this complex and uncertain world, if we all work together, we can implement policies that strengthen free-market systems through smart regulation, strong institutions, reliable data, and robust social safety nets.”
IMF Proposals for Economic Stability
Firstly, to sustainably increase growth so that the economy can generate more employment, the government can collect more revenue, and public and private debt can become more sustainable.
Secondly, to restore the government’s financial position so that it can cope with future shocks and meet urgent needs, without raising interest rates on private sector loans.
Thirdly, to eliminate excess imbalances (both domestic and external) so that they do not pose a threat to economic stability in the future.