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IMF
chief Kristalina Georgieva, speaking to G20 finance ministers
and central bank governors in the western Indian state of
Gujarat, said divergence in countries' economic fortunes was a
persistent concern.
Inflation was finally trending downward, she said, though
"headline inflation is still too high and core inflation remains
sticky despite the significant monetary policy tightening."
Still, inflation could remain higher for longer and require even
more policy tightening, she warned.
"While there is progress, the job is not yet done — monetary
policy must stay the course. A premature celebration can reverse
the hard-won gains made so far in the disinflation process."
Lowering inflation was a top priority for countries, Georgieva
said, along with efforts like rebuilding fiscal buffers and
growth-enhancing reforms.
"To support these reform efforts, the Fund will also expand its
work on mobilizing domestic resources, improving quality of
country spending, building deep capital markets and improving
the environment for private investment – both domestic and
foreign," she said.
She emphasized the need for strengthening the global financial
safety net, including reviewing the IMF's quota resources,
critical for ensuring predictability of the IMF's firepower
which has shrunk in relative terms.
The IMF chief also highlighted the progress made on restoring
debt sustainability following a recent agreement on Zambia's
debt restructuring.
Still, "the debt restructuring process still needs to be
speedier and more effective," she said. "The costs of delays in
reaching agreement on needed debt treatments are borne acutely
by borrower countries and their people, who are least able to
bear this burden."
(Reporting by Swati Bhat in Mumbai and Shivam Patel in New
Delhi; editing by Sudipto Ganguly and Bernadette Baum)
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