Be realistic, avoid complacency: Leaders at WEF meeting

IMF Managing Director Kristalina Georgieva. File
| Photo Credit: AFP

As the five-day-long annual meeting of world leaders in Davos ended on January 20, 2023, they called for proceeding into the new year with a sense of realism and caution while avoiding any complacency.

Amid looming threats of cost of living crises emanating from the Ukraine war and continuing pandemic-related risks, the leaders on Friday said there is a need for a resilient and determined approach towards a green and inclusive growth.

“The anaemic economic growth, inflationary pressures and the war in Ukraine, all these factors tell us why we should proceed into the new year with a sense of realism and caution,” IMF Chief Kristalina Georgieva said during the closing session of the World Economic Forum meeting on global economy.

She also cautioned against Western climate subsidies and said these may hurt emerging and developing economies.

“Western subsidies to combat climate change and encourage the transition to clean energy sources by using public money to step up private investment… may not serve well the emerging markets and the developing world,” she said.

There may be glimmers of positive news but leaders must not slide into “complacency”, former U.S. Treasury Secretary Lawrence Summers said.

European Central Bank President and former IMF chief Christine Lagarde said policy makers, corporations, and consumers must adopt a “resilient, determined approach for digital, green, and inclusive growth”.