IMF chief sees global GDP growth as 'beautiful but not enough' to handle 'the debt that is hanging around our necks' | Fortune

"Leading global economic policymakers at the World Economic Forum in Davos urged countries and businesses to filter out the turmoil from a week of clashes with the Trump administration and focus on boosting growth and fighting inequality in a world where trade will continue to flow and international cooperation is still badly needed. The global economy is showing unexpected resilience despite the noise, European Central Bank head Christine Lagarde, International Monetary Fund head Kristalina Georgieva and World Trade Organization head Ngozi Okonjo-Iweala said in a panel discussion Friday."

"What is now needed, they said, are efforts to boost growth to offset heavy debt levels around the world and ensure that disruptive technologies like artificial intelligence don't worsen inequality or devastate labor markets. And Europe needs to boost productivity and improve its business climate for investment."

"Georgieva said the IMF's recently raised forecast of 3.3% global growth for this year was "beautiful but not enough ... do not fall into complacency." She said that level of growth wasn't enough to wear down "the debt that is hanging around our necks" and that governments need to take care of "those who are falling off the wagon." "We have to look at Plan B, or Plans B," said Lagarde. "I think we've had a lot of noise this week... and we need to distinguish the signal from the noise... we should be talking about alternatives.""

Global policymakers urged countries and businesses to ignore short-term turmoil and prioritize boosting growth and fighting inequality. The global economy shows unexpected resilience despite trade policy disruptions and political noise. Persistent risks include high government debt and widening inequality that require stronger growth to address. Disruptive technologies such as artificial intelligence need governance to prevent labor market devastation and deeper inequality. Europe requires productivity improvements and a better business climate to attract investment. Continued trade flows and international cooperation remain necessary to sustain growth and shared prosperity.

Read at Fortune