The head of the International Monetary Fund underlined global cooperation in the face of urgent challenges from slow growth and the existential threat of climate change. Speaking in Washington ahead of the annual meetings of the IMF and World Bank, Georgieva acknowledged a “difficult geopolitical environment” but urged the international community to come together.
Georgieva said in her speech, “I am celebrating some progress in taming inflation when saying that the big global inflation wave is in retreat.” The catalysts for this positive trend were decisive monetary policy, easing supply chain constraints, and falling food and energy prices, which have collectively guided the world back toward price stability. Importantly, she said, “This success has not been attained at the cost of a global recession or huge job losses.”.
However, she warned that even if inflation rates are moderating, the higher price levels that will influence consumers continue to be felt, especially by the world’s poorest economies. “The higher price level that we feel in our wallets is here to stay,” she said, noting the uneven effects on vulnerable peoples.
Georgieva went on to announce a third chair from Africa for the executive board of the IMF which was taken by Ivory Coast, which was a decisive step towards further representation of African nations.
Her comments come at a critical moment, with rising tensions in the Middle East and the approaching US presidential election, where former President Donald Trump is to square off against Vice President Kamala Harris. Trump has floated raising tariffs and expanding the influence of the presidency over monetary policy — which the independent Federal Reserve currently oversees.
Speaking at the event, Georgieva praised independence for central banks and international financial institutions that helped greatly in supporting countries during the COVID-19 pandemic, but further unfolding of a geopolitical maelstrom, especially aggravation of war in the Middle East, adds extra problems for those policymakers dealing with stagnant global growth, as well as rising public debt.