Global economy to be 13 times larger in 100 years if countries work together: IMF chief

The International Monetary Fund (IMF) chief has called on countries to work together to create a more prosperous world for the future generations.

In an exclusive interview with China Central Television aired on Friday, IMF managing director Kristalina Georgieva elaborated on her economic projection for the next 100 years that she presented in a speech at King's College, Cambridge in March.

"What I did with this speech is to take inspiration from [British economist] John Maynard Keynes, who in 1930s, in the midst of the depression, wrote his vision for his grandchildren. A hundred years later, his projection that technology and accumulation of capital would lift up living standards eight times has materialized. A hundred years later, we live longer, we are healthier, we have better opportunities, higher standards of living. And if we cooperate, if we work more together, then the world would be 13 times better off. I am an optimist. I believe that my granddaughter would live in a more prosperous world," she said.

In the lecture titled "The Economic Possibilities For My Grandchildren" in Cambridge, Georgieva shared two possible scenarios for the next 100 years, with one being the 'low ambition scenario' that global GDP would be about three times larger and global living standards twice as high as today, and another being the 'high ambition scenario' that global GDP would be 13 times larger and living standards would be nine times higher.

She stressed that the responsibility today is not to let economies slip into runaway inflation, and to overcome the weakest medium-term growth prospects in decades.

In April, the IMF revised up its expectations for global economic growth 3.2 percent this year and next, a slight increase of 0.1 percentage point from its January assessment and 0.3 percentage point from the one made in last October. But the institution warned that the outlook remains cautious amid persistent inflation and geopolitical risks.

Global economy to be 13 times larger in 100 years if countries work together: IMF chief

Global economy to be 13 times larger in 100 years if countries work together: IMF chief

The People's Bank of China injected liquidity into the banking system through reverse repos and medium-term lending facility (MLF) on Monday.

The central bank conducted 4 billion yuan (about 562.2 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent.

A total of 182 billion yuan was also injected into the market via the MLF, which will mature in one year at an interest rate of 2.5 percent.

The move is aimed at keeping liquidity reasonable and ample in the banking system to fully satisfy the needs of financial institutions, the central bank said in a statement.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

Chinese central bank adds liquidity via reverse repos, MLF