"G20 economies should turn to reforms to improve growth amid policy tightening"

" G20 economies should turn to reforms to improve growth amid policy tightening \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n Most Group of Twenty economies are likely to keep monetary policy appropriately tight to bring inflation back to target. Central banks will need to keep interest rates higher for longer as inflation remains persistently elevated\u2014and easing too soon could undo hard-won progress to anchor inflation expectations. \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n This higher-for-longer environment for borrowing costs, however, portends sustained funding pressures for governments. That means governments will need to consolidate their finances to rebuild buffers and ensure that their debt is sustainable. Most G20 economies are poised to cut spending and boost revenues in the next few years, but in many cases IMF staff recommend even greater fiscal effort to ensure sufficient space to respond to future shocks and new fiscal challenges. \r\n Amid the likely drag of both monetary and fiscal tightening, both advanced economies and emerging market and developing countries should consider structural reforms, such as those to make product and labor markets more efficient, to support economic growth. While the exact prescriptions will differ by country, recent IMF\u00a0<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDcsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8wOS8yNS9ob3ctcmVmb3JtLWNhbi1haWQtZ3Jvd3RoLWFuZC1ncmVlbi10cmFuc2l0aW9uLWluLWRldmVsb3BpbmctZWNvbm9taWVzP3V0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZT1nb3ZkZWxpdmVyeSIsImJ1bGxldGluX2lkIjoiMjAyMzExMDcuODUyNzI2OTEifQ.hLl4pgKZw2w-hIZHDWV2P3yS4t6uLmXw-j8W7YvTE3o\/s\/1181822789\/br\/230162479767-l\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDcsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8wOS8yNS9ob3ctcmVmb3JtLWNhbi1haWQtZ3Jvd3RoLWFuZC1ncmVlbi10cmFuc2l0aW9uLWluLWRldmVsb3BpbmctZWNvbm9taWVzP3V0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZT1nb3ZkZWxpdmVyeSIsImJ1bGxldGluX2lkIjoiMjAyMzExMDcuODUyNzI2OTEifQ.hLl4pgKZw2w-hIZHDWV2P3yS4t6uLmXw-j8W7YvTE3o\/s\/1181822789\/br\/230162479767-l&source=gmail&ust=1699500980166000&usg=AOvVaw14wiQ2BRVNPFgNmMTzC5Gm\">research \u00a0shows significant potential benefits of so-called first-generation reforms in emerging market and developing economies that, in turn, can have beneficial spillovers for advanced economies. \r\n As the\u00a0<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDgsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvY2hhcnQtb2YtdGhlLXdlZWs_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.l514a9FG3cKYo40xA4dXxw4gZHgRX5EaqaiR38DIBbw\/s\/1181822789\/br\/230162479767-l\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDgsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvY2hhcnQtb2YtdGhlLXdlZWs_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.l514a9FG3cKYo40xA4dXxw4gZHgRX5EaqaiR38DIBbw\/s\/1181822789\/br\/230162479767-l&source=gmail&ust=1699500980166000&usg=AOvVaw2qMaI0r92XIxjv5zxPEcF_\">Chart of the Week \u00a0shows, pairing macroeconomic policy that\u2019s\u00a0 tighter than currently planned\u00a0in many economies\u2014particularly advanced economies\u2014with priority structural reforms can boost G20 economic output by as much as 0.7 percent over 2025-28 relative to current projections. That\u2019s according to\u00a0<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDksInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZXh0ZXJuYWwvbnAvZzIwLzExMDcyMy5odG0_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.dch23nTOypES8SIABVR0iPqxYE86EAjq_xo6Or6D2G8\/s\/1181822789\/br\/230162479767-l\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDksInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZXh0ZXJuYWwvbnAvZzIwLzExMDcyMy5odG0_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.dch23nTOypES8SIABVR0iPqxYE86EAjq_xo6Or6D2G8\/s\/1181822789\/br\/230162479767-l&source=gmail&ust=1699500980166000&usg=AOvVaw0iZZNsFen8fRo1t3SAabkf\">our latest report \u00a0prepared for the group, whose members are responsible for about four-fifths of global gross domestic product. \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n <a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMTAsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8xMS8wNy9nMjAtZWNvbm9taWVzLXNob3VsZC10dXJuLXRvLXJlZm9ybXMtdG8taW1wcm92ZS1ncm93dGgtYW1pZC1wb2xpY3ktdGlnaHRlbmluZz91dG1fbWVkaXVtPWVtYWlsJnV0bV9zb3VyY2U9Z292ZGVsaXZlcnkiLCJidWxsZXRpbl9pZCI6IjIwMjMxMTA3Ljg1MjcyNjkxIn0.S32jZl3_H6U307yHe5farO-SZOlpcQwVifmrbD2zVBo\/s\/1181822789\/br\/230162479767-l\" target=\"_blank\" rel=\"noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMTAsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8xMS8wNy9nMjAtZWNvbm9taWVzLXNob3VsZC10dXJuLXRvLXJlZm9ybXMtdG8taW1wcm92ZS1ncm93dGgtYW1pZC1wb2xpY3ktdGlnaHRlbmluZz91dG1fbWVkaXVtPWVtYWlsJnV0bV9zb3VyY2U9Z292ZGVsaXZlcnkiLCJidWxsZXRpbl9pZCI6IjIwMjMxMTA3Ljg1MjcyNjkxIn0.S32jZl3_H6U307yHe5farO-SZOlpcQwVifmrbD2zVBo\/s\/1181822789\/br\/230162479767-l&source=gmail&ust=1699500980166000&usg=AOvVaw1MTQMPyMQkzeHhwBXwyXB7\"><img class=\"CToWUd\" src=\"https:\/\/ci4.googleusercontent.com\/proxy\/bEF8oGxLXNpzG55i49Oy5jxAgA1sQjwFk202S0AlkjPEdh2Bl7yJ29X0WUnZvTbY_-6ZJI_7bYNuDHl0_1QsC60ns_I0R9vCzuRZM3H7d0_mzrD9sLU1igfpBePKJkpUBnL9NSM6l2gHQEHKCxtpn7QlWHe6vzLNusW9=s0-d-e1-ft#https:\/\/content.govdelivery.com\/attachments\/fancy_images\/USIMF\/2023\/11\/8490801\/5075372\/cotw-g20_crop.png\" alt=\"chart showing how a mix of structural reforms with macro policies can help boost growth\" width=\"539\" height=\"539\" data-bit=\"iit\" \/> \r\n \r\n \r\n \r\n \r\n While the recommended macroeconomic adjustments would weigh on output in the G20\u2019s advanced economies in coming years\u2014because of a tighter-than-planned fiscal consolidation\u2014they would substantially reduce public debt burdens and trade imbalances among G20 economies. And the burden on output would be more than offset should the changes be accompanied by recommended structural reforms. The pace and composition of fiscal consolidation should protect of the most vulnerable people to ensure inclusive and equitable outcomes. \r\n Our G20 report follows the latest IMF\u00a0<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMTEsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8xMC8xMC9yZXNpbGllbnQtZ2xvYmFsLWVjb25vbXktc3RpbGwtbGltcGluZy1hbG9uZy13aXRoLWdyb3dpbmctZGl2ZXJnZW5jZXM_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.-609jO-Rt4rHSnzpRRewQlaIracYs5trhUKjlTQfAgc\/s\/1181822789\/br\/230162479767-l\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMTEsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3LmltZi5vcmcvZW4vQmxvZ3MvQXJ0aWNsZXMvMjAyMy8xMC8xMC9yZXNpbGllbnQtZ2xvYmFsLWVjb25vbXktc3RpbGwtbGltcGluZy1hbG9uZy13aXRoLWdyb3dpbmctZGl2ZXJnZW5jZXM_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDIzMTEwNy44NTI3MjY5MSJ9.-609jO-Rt4rHSnzpRRewQlaIracYs5trhUKjlTQfAgc\/s\/1181822789\/br\/230162479767-l&source=gmail&ust=1699500980167000&usg=AOvVaw1_oLZoslGrvHlVLXoKW4c7\">World Economic Outlook , which forecast growth will slow from 3.5 percent last year to 3 percent this year and 2.9 percent next year\u2014a slight downgrade from July. Five-year-ahead projections are down from a peak of 4.9 percent a decade ago to 3.1 percent for 2028, the lowest such forecast since 1990. \r\n The weak growth outlook amid heightened uncertainty, still-elevated global inflation, and limited fiscal space provides many challenges for policymakers. And while some IMF recommendations might, therefore, seem difficult at such a time, our report does highlight more upbeat consequences: disinflation, rebuilt buffers to help manage future shocks, and the prospect of stronger and more balanced growth. \r\n\r\n "

"G20 economies should turn to reforms to improve growth amid policy tightening"

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