Long periods of slow economic growth can cause a jump in inequality. Buta balanced set of policies can stave off that outcome, notes KristalinaGeorgieva in her IMF Blog. Global growth isexpected to reach 3.2 percent this year and 3.3 percent in 2025, well below the3.8 percent average from the turn of the century until the pandemic. Meanwhile,medium-term growth projections continue to languish at their lowest in decades.For these reasons, a strong global financial safety net is needed for countriesthat require support. With that goal in mind, the IMF is working on a packageof reforms to its lending framework. To continue to serve the needs of the mostvulnerable members, the concessional lending instrument for low-incomecountries, the Poverty Reduction and Growth Trust (PRGT), is beingreviewed. With demand expected to exceed pre-pandemic levels, it is vital that theIMF membership comes together to ensure the PRGT is adequately resourced, andits long-term financing is put on a sustainable footing.

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