The International Monetary Fund (IMF) announced that the medium-term prospects for global growth are the weakest in decades, but noted that major economies in the G20 could strengthen them if they cooperate to tackle climate change, avoid trade restrictions, and establish global principles for artificial intelligence. Kristalina Georgieva, the managing director of the IMF, urged the major economies of the G20 to "act boldly" to give a boost to reform-related policies following the economic shocks from the COVID-19 pandemic and the war in Ukraine.
Georgieva, who will address G20 finance officials when they meet in Sao Paulo this week, stated that the decline in global growth has affected all countries, but has had particularly "concerning" effects on emerging markets and developing economies. She emphasized the necessity for countries to continue expanding their tax base, bridging gaps, and improving tax systems, noting that the G20 has requested the IMF and World Bank to launch a joint initiative in this regard.
The IMF's report indicated that it is now expected to take emerging markets and developing economies 130 years to close half the gap in per capita income with advanced economies, up from about 80 years before the 2008 global financial crisis. Brazil, which holds the G20 presidency this year, has prioritized two main issues: ending inequality and addressing climate change.
