The general director of the International Monetary Fund (IMF) said this Thursday that governments must work to reduce debt and rebuild ‘buffers’ for the next shock, at a time when low economic growth is expected.
Kristalina Georgieva highlighted, in her speech prior to the annual meetings of the IMF with the World Bank, that, Despite having managed to control inflation, forecasts point to a “combination of low growth and high debt.”“, indicating a “difficult future.”
This limits the budgetary margin of the states, due to the “part of public income consumed by the payment of interest,” highlighted the person in charge, defending the need for governments to make an effort to reduce debt and rebuild the ‘buffers’. .
In addition to the budget containment effort, “in the medium term, Growth is essential to create jobs.tax revenues, budget space and debt sustainability,” he noted.
To achieve economic growth, it is necessary to focus on reforms, the IMF managing director advised, that is, “making the labor market work for people”, as well as mobilizing capital and improving productivity.
The official admitted that “globally, the pace of reforms has been slowing since the global financial crisis, as discontent grows,” but said she believes “progress is possible.”
Source: Observadora
