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Dear MARIA, In today's edition, we highlight: Reinvigorating global growth through productivity reforms Southeast Asia can gain by packaging ambitious reforms New IMF Advisory Council on Entrepreneurship and Growth Stay connected with the IMF on WhatsApp Back to Basics: what are bonds? Global talent and economic success in F&D magazine, and more ECONOMIC GROWTH Reinvigorating Global Growth through Productivity Reforms (Credit: IMF Photo/Melissa Lyttle) Against a backdrop of shifting patterns of trade and capital flows, advancing AI, widening divergences, and shifting policy priorities, global growth is steady but underwhelming. The five-year ahead growth forecast remains at 3.1 percent—well below the pre-pandemic average of 3.7 percent, largely due to declining productivity growth. The path to reviving medium-term growth lies in pursuing structural reforms to raise productivity, said IMF Deputy Managing Director Nigel Clarke in remarks at the China Development Forum in Beijing. “Let me focus on two priorities that are especially relevant for Asia,” said Clarke. “First, innovation. We know that productivity growth increases with technological advances—advances made possible through investments in research and development, a proxy for innovation effort. Second, boosting productivity through better resource allocation. The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth.” There are many ways countries can achieve a better allocation of resources, including by implementing policies aimed at increasing the mobility of workers, such as re-skilling programs. And more importantly, by strengthening market forces, which create the necessary incentives, through prices and wages, he said, noting that Asia provides an example of how such reforms can fuel growth. Read the Speech ECONOMIC GROWTH Southeast Asia’s Economies Can Gain Most by Packaging Ambitious Reforms  (Credit: Nikada/iStock by Getty Images) Southeast Asia’s major economies have made major strides over the last couple of decades. The largest have seen income per capita grow at least three-fold over the past 20 years amid global integration and prudent policymaking. Building on such gains to close the region’s gap with high-income countries—an ambition for many seeking to break from the so-called middle-income trap—while challenging, is in reach, writes the IMF’s Anne-Charlotte Paret Onorato in a new blog. "Our study suggests that countries such as Indonesia, Malaysia, Philippines, Thailand, and Vietnam could increase long-term real economic output, on average, by 1.5 percent to 2 percent after two years and up to 3 percent after four years following comprehensive and simultaneous economy-wide reform packages," she writes. Packaging ambitious reforms, however, often entails substantial political economy challenges; efforts on consensus building across key stakeholders is needed to facilitate such an approach and help deliver sustainable gains, she says. Read the Blog IMF MANAGEMENT IMF Managing Director Establishes Advisory Council on Entrepreneurship and Growth (Credit: IMF Photo) As part of the International Monetary Fund’s efforts to help its 191 member countries create more conducive macroeconomic and financial conditions for strong and durable economic growth driven by productivity enhancements, IMF Managing Director Kristalina Georgieva has convened an inaugural meeting with her new Advisory Council on Entrepreneurship and Growth. “The medium-term outlook for world economic growth is at its lowest in several decades. Much of the slowdown can be attributed to declining productivity growth,” Georgieva noted. “The Council brings together a group of leading thinkers and practitioners in business, finance, academia, and policymaking to share their views and experiences on how macroeconomic and financial policies can provide a supportive environment for innovation, entrepreneurship, and productivity—key ingredients for a thriving private sector and strong economic growth,” she added. The IMF Managing Director’s Advisory Council will meet approximately once every three months in structured discussions under Chatham House rules. Read the Press Release IMF SOCIAL MEDIA Stay Connected with the IMF on WhatsApp! (Credit: IMF) Want to keep up with the latest from the IMF? Subscribe to our WhatsApp Channel for the latest economic data, expert perspectives, economic trends, and more. Subscribe now and stay informed! Click here to join our WhatsApp channel.  IMF BACK TO BASICS Explaining Bonds In the highly complex, interconnected financial world, bonds play a crucial role. Watch our latest Back to Basics video to discover how bonds work, why they matter to both individual investors and governments, and the essential role they play in the global economy. FINANCE & DEVELOPMENT Global Talent and Economic Success (Credit: Abbey Lossing) Countries that attract the world’s most talented people will be the most successful at overcoming mounting economic pressures from aging populations and declining productivity, Harvard Business School’s William Kerr writes in F&D magazine. Exceptionally talented people, including Nobel Prize winners and inventors, migrate at higher rates than the general population, but policymakers will need new frameworks amid a shift in attitudes toward migration. “Farsighted leaders want their countries to successfully navigate tomorrow’s challenges, be they aging populations, declining productivity, climate degradation, or escalating global political tensions,” Kerr writes. “Constructing a competitive, winning team is vital to this dynamic national success, just as it is for businesses.” ECONOMIC GROWTH Sri Lanka’s Economic Reform Program is Delivering—Keep Going for a Full Recovery (Credit: iStock Photo) This March marks the mid-point of Sri Lanka’s four-year economic reform program supported by the IMF. In the two years since its inception, difficult but much needed reforms were undertaken with significant gains, thanks to the commitment and sacrifice of the people of Sri Lanka, write the IMF’s Peter Breuer and Martha Tesfaye Woldemichael in a recent op-ed. At this mid-point mark, it is important to continue with the reforms and avoid the mistakes of the past. About half of IMF programs Sri Lanka has had prior to the current one, ended prematurely, often followed by economic underperformance, the authors write. It is important to arrest this boom-bust cycle and manage the economy so that the recovery can be sustained even in an uncertain global environment and so that all Sri Lankans benefit from it. The task ahead is ambitious but doable, say the authors. Keeping the reform momentum going will be key for a full recovery, benefitting not only this generation but future ones as well. The IMF will remain a steadfast partner to support Sri Lanka in securing a strong and durable recovery improving the lives and livelihoods of all citizens. The International Economic Association’s Women in Leadership in Economics Initiative (IEA-WE) connects women economists worldwide and helps showcase their important empirical research, especially in developing countries. IMF Podcasts has partnered with the IEA-WE to produce a special series featuring the economists behind the invaluable local research that informs policymakers in places often overlooked. This episode of Driving Change features Bangladeshi economist Rumana Huque, whose research into the real costs of tobacco consumption is prompting a rethink of the country’s tobacco tax system. Weekly Roundup STAFF PAPER Could Digital Currencies Lead to the Disappearance of Cash from the Market? Private and public agents’ plans and actions to introduce digital currencies and other innovative payment instruments could produce some unintended consequences, including the potential disappearance of physical cash. A new IMF staff paper employs a two-sided market model to examine how payment systems might respond to new currencies. Numerical simulations indicate that the success of a new currency hinges on a large-scale launch. However, even unsuccessful attempts could disrupt existing systems, potentially resulting in the elimination of cash. If cash plays a critical role as a safeguard, regulatory and monetary authorities should give due consideration to ensure its continued availability when payment innovations are introduced, the authors conclude. MARK YOUR CALENDAR APRIL 17, 10:00 AM ET 2025 Spring Meetings Curtain Raiser   Join us virtually on Thursday, April 17, from 10 AM to 10:45 AM ET (2 PM to 2:45 PM GMT) for the 2025 IMF Spring Meetings Curtain Raiser event. IMF Managing Director Kristalina Georgieva will deliver a speech on the outlook for the global economy and policy priorities for member countries. The event will be livestreamed at IMF.org. Thank you again very much for your interest in the Weekend Read! Be sure to let us know what issues and trends we should have on our radar. Miriam Van Dyck Editor IMF Weekend Read mvandyck@IMF.org

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