IMF calls for stepped-up external support to implement reforms, boost growth

THE International Monetary Fund (IMF) has called for increased external support to help countries implement critical reforms and stimulate economic growth amid mounting global economic challenges.

IMF Managing Director, Kristalina Georgieva, made this appeal at the G20 Finance Ministers and Central Bank Governors’ meeting in Cape Town, South Africa. She emphasized that while domestic reforms are essential, many countries need external assistance to bridge financing gaps, build capacity, and attract private investments.

“Stepped-up external support is vital to help countries implement reforms through capacity development, concessional external support, and actions to crowd in more private inflows,” Georgieva stated.

With global growth projected at 3.3 percent in 2025—well below historical averages—Georgieva stressed the need for policies that strengthen macroeconomic stability, enhance productivity, and promote sustainable growth. She noted that countries must navigate multiple pressures, including containing short-term risks, rebuilding fiscal buffers, and boosting medium-term growth prospects.

“For central banks, the focus remains on fully restoring price stability while supporting activity and employment. On the fiscal side, most countries need to put public debt on a sustainable path and rebuild fiscal buffers,” she added.

The IMF chief also urged governments to prioritize supply-side policies such as cutting red tape, encouraging entrepreneurship, enhancing education systems, and adopting productivity-enhancing technologies like artificial intelligence.

On debt sustainability, Georgieva acknowledged that while some countries may need debt restructuring, others struggle with high interest payments that hinder investments in education, health, and infrastructure. She called for faster and more predictable debt restructuring processes, building on progress made through the Common Framework and the Global Sovereign Debt Roundtable.

The IMF reaffirmed its commitment to supporting member countries through policy advice, capacity development, and lending programs to promote macroeconomic stability and sustainable growth.

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