Takeaways from the 2023 Annual Meetings in Marrakech

With the conclusion of the 2023 Annual Meetings in the enchanting city of Marrakech, Morocco, I reflect on the progress made and the work that lies ahead. As the international community came together in a spirit of cooperation to support global economic priorities, we learned of the terrible events in Israel and Gaza. We deeply mourn the tragic loss of life and I pray that we see peace prevail.

We came into this year’s Annual Meetings with four objectives: (1) enhance the IMF’s financial ability to assist member countries by boosting the Fund's permanent resources via quota increase; (2) reinforce our ability to provide concessional financing to low?income countries; (3) garner greater representation for Africa at the IMF; and (4) make progress on sovereign debt restructurings.?The meetings concluded with progress in all four areas.

• Building Bridges to Future Growth: 2023 Annual Meetings Curtain Raiser Speech
• IMF Managing Director’s Press Briefing on the Global Policy Agenda

Our?membership came together to strengthen the Fund, committing to complete?the Sixteenth Review of Quotas by year-end with a meaningful quota increase. Members also stepped up to provide subsidy resources for our Poverty Resources and Growth Trust (PRGT), which allows us to provide zero-interest rate loans to low-income countries. And we received unanimous support for a third African Chair on the Executive Board of the IMF, increasing sub-Saharan Africa's representation.?

• Chair’s Statement: Forty-Eighth Meeting of the IMFC
• Press Briefing: International Monetary and Financial Committee

Sovereign debt management was a recurring theme throughout our discussions. We have made constructive progress in recent months. Together with the Indian G20 presidency and World Bank, the IMF set up the?Global Sovereign Debt Roundtable, which brings together public and private creditors and debtor countries. It took Chad 11 months to move from an IMF staff-level agreement to secure the creditor assurances needed for approval of the program; and more recently, it took just five months for Ghana. Last week, we saw progress in debt restructuring agreements for Sri Lanka and Zambia. We?would still like to see even faster progress, but we’re moving in the right direction!?

• Global Sovereign Debt Roundtable-Cochairs Progress Report

The global economy continues to recover and has shown remarkable resilience. But growth remains slow and uneven, with widening divergences. According to our?latest projections, world economic growth will slow from 3.5 percent in 2022 to 3 percent this year and 2.9 percent next. This remains well below the historical average. Inflation is down, but it is still high in many countries. So, we urged policymakers to maintain a tight policy stance and avoid easing prematurely.

• ?World Economic Outlook
• Global Financial Stability Report

In this slow-growth environment with rising debt levels and rising debt servicing costs, how should policymakers promote growth and protect the vulnerable? We discussed a way forward emphasizing a package of reforms including, for example, improving governance, limiting excessive business regulation, and reducing restrictions on trade and foreign capital has the potential to significantly boost global output -- by up to 4 percent in two years and up to 8 percent in four years.?

• Joint Seminar: Reform Priorities for Tackling Debt
• Financial Inclusion as a Pathway to Resilient and Shared Growth

Implementing these reforms brings added benefit—they can?facilitate the green transition in the economy by generating growth, creating both political and fiscal space, and by incentivizing the private sector to play a greater role. It is increasingly clear that countries must adopt a new mix of policies to meet global climate goals with carbon pricing at the center.

• Fiscal Monitor

In my speech at the Annual Meetings Plenary session, I encouraged policymakers to envision the world in 2073, stressing the importance of investing in strong economic foundations and in global cooperation. With the right approach, we can unlock the door to opportunities for the next generation.

• A Story of Hope and Opportunity for the Next Generation (2023 Annual Meetings Plenary Speech)

Finally, a huge thank you to the government and people of Morocco for their kindness and hospitality here in Marrakech.?We feel a sense of deep gratitude: Morocco hosted us so generously while still healing from the devastating earthquake that struck on September 8, and they did so with warmth and a great sense of optimism. Our Meetings in Marrakech did not just discuss global economic challenges, they also reinforced our solidarity and strong partnership with Morocco.?In that spirit, we joined with the World Bank and the Moroccan authorities to issue the “Marrakech Principles for Global Cooperation”— our call for collaborative action to find areas of common ground and expand opportunities for a better future.

• Morocco’s Quest for Stronger and Inclusive Growth - Book Launch

Bravo to all who worked to make the Meetings such a success.

Shukran!