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Inaugural speech by Gita Gopinath, 1st Deputy Managing Director at the IMF Economic Review Conference on Transformational Reform: Seizing Opportunities from Crisis

Inaugural speech by Gita Gopinath, 1st Deputy Managing Director at the IMF Economic Review Conference on Transformational Reform: Seizing Opportunities from Crisis

Inaugural speech by Gita Gopinath, 1st Deputy Managing Director at the IMF Economic Review Conference on Transformational Reform: Seizing Opportunities from Crisis

Rabat, Morocco

23 June 2022

Glad to welcome you all here IMF Economic Review Summer Conference, Organized jointly by Bank Al-Maghrib and the IMF.

i want to start with thanks Andrei LevchenkoThe managing editor of the IMF Economic Review, the editorial team at the review, and the staff of Bank Al-Maghrib for putting together such a wonderful conference.

I am very sorry that I could not be with you in person today in Rabat – a beautiful city with an ancient past and a promising future. Indeed, we have much to learn from the trajectory of Rabat and Morocco – a story of both incredible resilience and change over the years.

We can draw inspiration from the Moroccan story as economies around the world seek to strengthen their resilience in the midst of an increasingly dramatic shock, while embracing a transformational reform that builds their capacity for the future.

In that spirit, today and tomorrow, an elite group of academics and policy makers will discuss not only the challenges ahead, but also important issues. Medium and long-term issues facing emerging and developing economies – from structural change to trade, from inequality to climate change, and beyond.

It is more important than ever to fix these structural issues, given the increasing obstacles many countries now face to their recovery. Today, a confluence of disasters is affecting global recovery.

Just as the global economy was climbing back up from the depths of the pandemic, we witnessed the health and economic impact of a renewed escalation of the virus – from the new economic shock from Russia’s invasion of Ukraine.

In April, we Downgraded Global Growth Projected 3.6 percent for both 2022 and 2023.

since, war Ukraine and in sanctions Intensified action against Russia. Ukraine has the biggest impact, but globally we are seeing weak growth. inflation has also remained consistently high and has been outpaced by energy and food commodity prices in many economies.

In addition to war, recently hardened lockdown measures in china Weighing in on the growth and risk of further disruption to global supply chains.

Bottom-line: Global growth likely to be lower than expected, while inflation remains high,

we must not forget that Poverty and inequality on the rise,

  • The pandemic is estimated to have pushed an additional 75 million people into extreme poverty in 2021, relative to pre-pandemic trends.
  • The high food prices, including the disruptions caused by the war in Ukraine, have greatly exacerbated this phenomenon, adding to the challenges faced by the poor. We are already seeing how high food prices and constraints on the food supply have resulted in growth. food insecurityin particular Middle East and AfricaWhere food accounts for 40 percent of consumer spending.

And if these challenges weren’t enough, the downside risks approach dominates. The worsening of the situation in Ukraine would result in increased human and economic costs and increased global fragmentation. Higher-than-expected inflation will exacerbate the crisis of cost of living and may provoke social tensions. The associated tight global financial conditions will add to the challenges from high debt levels. A more prolonged growth slowdown in China will further weigh on global activity.

All of these challenges have immediate consequences. But they can also leave long-term scars that drag growth down for years to come—especially for emerging and developing economies with limited policy space and generally low vaccination rates. Therefore, today even in the midst of a confluence of calamities, we cannot lose sight of the medium and long term. The steps we take now can change a lot for the future.

That is why it gives me great pleasure to see so many talented scholars and policy makers represented at this conference. And I am sure that you will actively participate in identifying existing problems and making progress towards finding solutions. I am proud to be a partner in this endeavour.

And although I couldn’t connect with you in person, I’m thrilled to be visiting Morocco in about a year for the 2023 Annual Meeting in Marrakesh. I look forward to – and will continue to deepen – our excellent partnership with Morocco this year and beyond.

thank you so much.

IMF Communications Department
media relations

Press officer:

phone: +1 202 623-7100E-mail: [email protected]

@IMFSSpokesperson

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Inaugural speech by Gita Gopinath, 1st Deputy Managing Director at the IMF Economic Review Conference on Transformational Reform: Seizing Opportunities from Crisis

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