IMF’s Georgieva talks debt restructuring, growth outlook & climate resilience

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, recently sat down for an exclusive interview with CNBC Africa's Godfrey Mutizwa to discuss the current global economic outlook. The interview took place in Morocco, where Georgieva commended the Moroccan government and its people for fostering a warm and optimistic atmosphere for the discussions. She emphasized the importance of solidarity in times of uncertainty, highlighting the need for a united front in assessing impending challenges. Georgieva expressed concerns about the slow and uneven recovery from various economic shocks, which have exacerbated existing disparities between resource-rich and resource-poor countries. This divergence poses a significant risk to global economic stability. Despite positive growth projections for the near future, the IMF chief warned that inflation rates remain a matter of concern, necessitating sustained higher interest rates that could further dampen economic growth prospects. To address these challenges, Georgieva underscored the importance of implementing structural reforms and investing in green and digital initiatives to unlock opportunities, particularly in regions like Africa, with a youthful population poised to drive growth and innovation. She highlighted the critical need for global cooperation in addressing pressing issues such as geopolitical turmoil, inflation, and financial vulnerabilities that could derail economic progress. Georgieva emphasized the importance of striking a balance between combating inflation and sustaining growth to ensure positive economic outcomes. She also discussed the IMF's commitment to increasing representation from sub-Saharan Africa within its executive board and expanding financial resources to support poverty reduction and climate resilience initiatives. The Managing Director shared the IMF's efforts to mobilize funds for climate financing, advocating for stronger incentives for rapid decarbonization and calling for global adherence to the 1.5-degree Celsius target set by the Paris Agreement. As the world prepares for COP28, Georgieva stressed the urgency of building trust among nations and delivering on climate finance commitments to accelerate the transition to a sustainable future. Despite acknowledging the challenges associated with implementing innovative ideas like special climate drawing rights, Georgieva remained open to exploring all potential solutions to address the climate crisis and achieve long-term financial stability.