Managing Director of the International Monetary Fund, IMF Kristalina Georgieva has urged leaders of developing countries to implement critical reforms to enhance economic resilience and boost global growth.
She emphasized that although difficult, reforms such as improving labour markets, mobilising capital, and increasing productivity are essential to creating jobs, sustaining tax revenues, and ensuring debt sustainability.
She warned that delays in reform efforts could hinder progress and called for collaborations amongst nations to prevent further fragmentation of the global economy.
” There is plenty we can and must do to lift our growth potential, reduce debt, and build a more resilient world economy. Governments must work to reduce debt and rebuild buffers for the next shot, which will surely come and may come sooner than we expect. Budgets need to be consolidated credibly yet gradually in most countries.
This will involve difficult choices on how to raise revenues and make spending more efficient, while also making sure that policy actions are well explained to earn the trust of the people, ” She said.
