Washington – IMF chief says global economy doing ‘better than feared,’ risks remain, signaling cautious optimism about the world’s financial recovery amid ongoing uncertainty.
In a recent statement, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that global growth has shown resilience despite multiple challenges. She emphasized that while recovery continues, it remains uneven across regions.
According to Georgieva, the IMF expects the global economy to perform “better than feared” earlier this year, as inflation has gradually eased in many major economies. However, she warned that several risks could still disrupt growth, including high interest rates, geopolitical tensions, and increasing debt burdens in developing countries.
IMF chief says global economy doing ‘better than feared,’ risks remain, especially with countries facing political instability and climate-related disasters. Georgieva highlighted that while some nations have successfully reduced inflation, others are still struggling with price pressures and slow wage growth.
She noted that global inflation has fallen from its 2022 peak, but central banks must remain vigilant. Tight monetary policies have helped stabilize economies, but they also limit growth and increase financial stress for low-income nations.
The IMF urged governments to focus on sustainable fiscal policies and stronger cooperation to prevent global fragmentation. Georgieva stressed that trade tensions, technological competition, and regional conflicts could further strain the recovery process.
She also called for greater investment in clean energy and digital innovation to boost long-term productivity. These steps, she said, are key to building economic resilience and supporting future generations.
IMF chief says global economy doing ‘better than feared,’ risks remain, but warned that policymakers should not become complacent. “We must stay alert, strengthen cooperation, and continue reform efforts to ensure stability,” she concluded.
The IMF will release its updated global economic outlook next week, providing a clearer picture of growth prospects and potential vulnerabilities in 2025.
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