IMF Recommends Not To Get Stuck In Low Economy And High Debt

Rupiah (Photo: Antara)

JAKARTA - The International Monetary Fund (IMF) underlines the importance of overcoming inflation and high debt, as well as implementing pro-growth reforms.

IMF IMF Implementing Director Kristalinaezeva said it had provided several recommendations to get out of the low-growth and high debt pathways.

According to Crystal, the first recommendation is that it is important to ensure inflation returns to its target. Major central banks, including in the US, have started a proper easing of policies. The challenge now is to complete efforts to overcome inflation without destroying the labor market unnecessaryly.

Second, it's time to act on debt and deficits. After years of fiscal support needed to deal with shocks, now it is necessary to rebuild fiscal buffers. In most countries, this step can be taken in stages, but must start immediately.

The third is countries to carry out pro-growth reforms ranging from cutting bureaucracy to improving governance.

"We have seen reforms become a significant source of benefit in various countries. Our analysis shows that this reform can increase production by up to 8 percent over 4 years in developing countries," he said on his official website, Friday, October 25.

Crystal said that when overcoming these challenges, it is important to continue working together on climate issues, technology, debt, and trade. Climate change and technology trigger transformation on a global economy that requires a global response.

Therefore, according to him, working together can take advantage of opportunities and reduce the risk of major changes.