IMF Chief Warns Poor Nations Face Greater Risk In Shock-Prone Global Economy

Business Today's Group Editor, Siddharth Zarabi in exclusive conversation with International Monetary Fund Managing Director Kristalina Georgieva has delivered a stark warning about the global outlook, saying the world is now far more vulnerable to repeated economic shocks. From the pandemic to the war in Ukraine, inflation spikes, rising interest rates and climate disasters, countries have been hit “one after another.” Many governments borrowed heavily to protect businesses and households — leaving debt levels high and growth weak. Her biggest concern: fiscal buffers are exhausted. When the next crisis strikes, wealthy nations may not be able to deploy massive rescue packages as they did before. That could leave smaller and poorer countries dangerously exposed. The IMF is currently running 50 rescue programs, including one in Sri Lanka — highlighting how widespread the strain has become.