NEW DELHI: International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that when the G20 finance ministers and central bank governors meet in Gandhinagar (Gujarat) next week, the world will be looking for joint action to address rising economic fragmentation, slowing growth, and high inflation. 

Ms Georgieva wrote and quoted in an IMF blog, "Agile multilateral support is vital to tackle common challenges posed by debt vulnerabilities, climate change, and limited concessional financing—especially for countries hit by shocks, not of their making."

She further pointed out, "Global headline inflation seems to have peaked, and core inflation has eased somewhat, particularly in India. But in most G20 countries—especially advanced economies—inflation remains well above central banks’ targets."

In April, the IMF had projected global growth at 2.8 per cent in 2023, down from 3.4 per cent in 2022. The bulk of it – over 70 per cent – is expected to come from the Asia-Pacific region.

“Yet, recent high-frequency indicators paint a mixed picture: weakness in manufacturing contrasts with resilience in services across the G20 countries and strong labour markets in advanced economies,” she has said. 

At the same time, financial fragilities uncovered by tight monetary policy require careful management, particularly as restoring price stability remains a priority, the IMF MD has added. 

Talking about G20’s key role, Ms Georgieva wrote, "In a more shock-prone world and at a time of fundamental transitions—from climate change and debt distress to trade tensions and economic fragmentation—the world has high expectations of international policymakers, and rightly so. We must act now and act together to get all countries back on a sustainable path to growth and prosperity."

"This calls for strong leadership from the G20 to ensure the international financial architecture is fit for purpose with a well-resourced and representative IMF at its centre. The global response must be commensurate in size to the world’s challenges," she added.