Global economic activity is slowing, particularly in the manufacturing sector, and medium-term growth prospects remain fragile, International Monetary Fund Director General Kristalina Georgieva said on Tuesday, Reuters reported.

Speaking at a meeting of G20 finance ministers and central bank governors in Gandhinagar, India, an IMF official said he was concerned about differences in economic performance between countries.

Finally, inflation is on a downward trend, although “core inflation remains high despite the significant tightening of monetary policy. However, inflation may remain at a higher level for longer and may require further tightening of monetary policy,” Georgieva said.

She added: “While progress is visible, our task is not yet complete – the current monetary policy must be maintained. A premature celebration could reverse hard-earned gains in the process of deflating inflation.”

Reducing inflation is a priority for countries, along with efforts such as restoring fiscal reserves (buffers) and reforms to support economic growth.

“To support these reforms, the IMF will expand its activities to mobilize domestic resources, support capital markets and improve the environment for private investment, both domestic and foreign,” said the Director General of the International Monetary Fund.

Georgieva drew attention to the need to strengthen the global mechanism of financial security, including a review of the IMF’s resources, a critical element to ensure the predictability of the institution’s capacity.

The IMF chief also highlighted the progress made in restoring debt sustainability, citing Zambia’s recent debt restructuring agreement as an example.