IMF Reminds Us That We Are in a Time of Climate Change and Digital Transition: This is a Challenge

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Managing Director of the International Monetary Fund (IMF) said that the world is currently facing two big challenges.

According to him, this pair of dynamics must be managed by all countries by building close collaboration with each other.

"The world is facing significant economic challenges, real threats from climate change and the digital transition," he said when giving a joint statement with the World Bank, quoted on Sunday, September 10.

Kristalina explained that in all contexts more frequent shocks have resulted in high debt levels, limited policy space in many countries, and increased geopolitical tensions.

“Well-designed and well-sequenced policies are critical to help accelerate growth, reduce policy trade-offs, and support green and digital transitions,” he emphasized.

Therefore, he encouraged global countries to be able to overcome challenges and take advantage of opportunities, working closely together and with partners.

“The world faces major transformational challenges and more frequent shocks at a time of increasing economic and geopolitical tensions. "World economic growth has slowed, with the medium-term outlook at its weakest point in three decades," he said.

Apart from that, progress in alleviating poverty has been hampered. Kristalina revealed that conflict and fragility are increasing.

“The world is facing geoeconomic fragmentation, extreme natural disasters exacerbated by climate change, and rising government debt. "Rapid digitalization and technological transformation create new challenges, but also opportunities," he added.

"With well-designed and properly sequenced reforms, a digital and green transition can deliver extraordinary economic, social, and environmental benefits, as well as increase prosperity and prosperity," he concluded.