Masud Ahmed: "The Global Economy Will Face More Shocks... The Value of Bretton Woods Is Important"

2024 World Economy and Financial Stability Conference

It has been assessed that the global economy will be exposed to more shocks in the future and its vulnerabilities will increase.

Masud Ahmed, Director of the Center for Global Development (CGD), is delivering the keynote speech at the "2024 Global Economy and Financial Stability Conference" held on the 3rd at the Plaza Hotel in Jung-gu, Seoul. Photo by Yongjun Cho jun21@

At the '2024 G20 Global Economy and Financial Stability Conference' jointly hosted by the Ministry of Economy and Finance, the Korea Development Institute (KDI), and the Bank of Korea on the 3rd, Masood Ahmed, President of the Center for Global Development (CGD), emphasized in his keynote speech, "Today’s global economy is becoming more fragmented, vulnerabilities are increasing, and the degree of exposure to shocks is intensifying," adding, "This is a time when the roles of the IMF and the World Bank (WB) are becoming even more important."

President Ahmed stated, "Due to various changes such as COVID-19, the Russia-Ukraine war, record-breaking heatwaves, and the end of the low-interest-rate era, policymakers today face greater shocks and the aftermath of these shocks is more severe," and added, "Especially low-income countries lack sufficient foreign exchange reserves, which has increased the roles of the IMF and WB over the past few years."

Regarding vulnerabilities, President Ahmed said, "There are no signs that poverty or economic growth prospects will significantly improve over the next decade," and "By 2030, more than 60% of the global poor will be living in vulnerable areas."

He added, "To solve the poverty problem, vulnerabilities must be addressed, and this issue will not only affect a country’s own citizens but will also spread to neighboring countries."

Finally, he mentioned fragmentation. President Ahmed said, "Political and economic fragmentation is progressing in the global economy," and "Mainly economically strong countries are increasing trade restrictions, and since these restrictions are mostly justified for security reasons, questions will arise about what role a country should play and how to properly implement it."

He continued, "With about eight weeks left until the U.S. presidential election, we must accept that relations with the U.S. and China will be filled with difficult challenges ahead, and we must also consider the relationship between Europe and China," emphasizing, "Ultimately, making the Bretton Woods system a safe platform for cooperation is the most important issue."