The IMF chief cautions against premature celebration as the global economy faces low growth and high debt.

• On Thursday, the head of the International Monetary Fund warned that high government debt and slow growth continue to pose significant challenges to the global economy.
• Kristalina Georgieva, Managing Director, praised the efforts of major central banks in controlling inflation but pointed out that their success was not consistent.
• Georgieva cautioned that international trade would no longer be the driving force of economic growth due to the increasing number of restrictive policies implemented by various economies.

On Thursday, the head of the International Monetary Fund warned that high debt and slow growth continue to pose significant challenges to the global economy.

While significant advancements have been made in the global economic recovery, governments have grown too reliant on borrowing, resulting in "anemic growth" that exacerbates the difficulties of repaying that debt, according to IMF Managing Director Kristalina Georgieva.

Karen Tso was informed by her that it was not yet time to celebrate. "The biggest challenge we face ahead is low growth and high debt," she stated, emphasizing the need for improvement.

Georgieva praised the efforts of major central banks in controlling inflation, but she pointed out that not all economies had achieved this and that high prices were still causing social and political unrest in some regions.

She stated that major economies have performed exceptionally well, but inflation persists in certain regions globally.

"Higher prices are having a negative impact on people's financial well-being and causing frustration in various countries."

The finance ministers and central bank governors will gather in Washington DC for the 2024 annual meetings of the IMF and the World Bank Group to discuss topics such as the world economic outlook, poverty eradication, and the green energy transition.

Georgieva cautioned that international trade would no longer be the driving force of economic growth due to the increasing number of restrictive policies implemented by various economies.

Beijing's unfair trade practices have led the U.S. and the European Union to impose punitive tariffs.

The speaker stated that the United States, as well as other countries, are facing pressures from people who feel that globalization did not benefit them. These individuals have lost their jobs and feel that their communities have been neglected. Their concerns about national security, primarily related to the pandemic and Russia's aggression against Ukraine, have led them to prioritize these issues.

"Industrialist and protectionist measures are increasingly being led by advanced economies, rather than emerging markets, resulting in an environment of greater mistrust."

The IMF managing director has previously cautioned against imposing restrictions, such as tariffs, as they can hinder international growth, as stated in a CNBC interview in June.

On Thursday, she emphasized that "retaliatory" trade measures could harm both the implementers and their targets.

She advised us to carefully consider the costs and benefits of introducing tariffs, and to ensure that we accurately calculate and allocate the costs and benefits to businesses and consumers in the medium term.

Georgieva mentioned geopolitical tensions as a major threat to global financial stability on Thursday.

The expanding conflict in the Middle East is a major concern for all of us, as it has the potential to disrupt regional economies and global oil and gas markets, she stated in her opening remarks.