Global economic growth has proved better than feared but still worse than needed, said International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday, as she urged countries to meet rising uncertainty with bold reforms and renewed resilience.
Speaking at the IMF Annual Meetings in Washington D.C., Georgieva unveiled the latest Global Policy Agenda, warning that the world faces growing unpredictability driven by geopolitical tensions, rapid technological shifts, demographic changes, and evolving trade dynamics. These overlapping challenges, she said, are eroding economic stability and directly impacting societies and livelihoods.
Reflecting on IMF's Spring Meetings earlier this year, Georgieva said that while recession was avoided, growth remains sluggish.
"Six months on, where do we stand? In a nutshell, better than feared but worse than needed. And uncertainty has continued to go up, up, up. Gold values, too. As you saw in our latest World Economic Outlook, global growth has held fairly steady, and it is projected to slow from 3.3 percent last year to 3.2 percent this year and 3.1 percent in 2026. That is better than we feared, better than what we projected six months ago," said Georgieva.
She attributed the global economy's resilience to stronger policy frameworks in many countries since the global financial crisis, and the private sector's adaptability in managing supply chains and uncertainty. However, she cautioned that medium-term prospects remain weak, public debt is near historic highs, and economic imbalances are widening. To build resilience, Georgieva said, governments need to focus on unlocking private sector potential, strengthening macroeconomic fundamentals, and addressing global imbalances.
She highlighted that the IMF has launched initiatives to support countries in strengthening economic and financial stability, including enhancing IMF's guidance on trade policies and domestic reforms.
The IMF chief also emphasized the urgent need to mobilize resources for low-income countries, calling on member economies to replenish the Poverty Reduction and Growth Trust (PRGT).
"Uncertainty is here to stay and change is unstoppable, but with change, comes opportunity," Georgieva said, adding that IMF will remain a trusted partner to help countries seize opportunities and build resilience in a turbulent world.
IMF calls for bold reforms to boost resilience as global growth falls short
IMF calls for bold reforms to boost resilience as global growth falls short
IMF calls for bold reforms to boost resilience as global growth falls short
