IMF chief: Global economy more resilient than feared but uncertainty looms
IMF Managing Director Kristalina Georgieva said the world economy has weathered multiple shocks better than expected and is now forecast to slow only slightly in 2025 and 2026, though she warned of high uncertainty and called for reforms.
The head of the International Monetary Fund, Kristalina Georgieva, told the Milken Institute in Washington that the global economy has proved more resilient than analysts feared, with economies like the United States avoiding recessions and benefiting from better policies, adaptable private sectors and less severe tariffs than anticipated【749143521955538†L193-L208】.
Georgieva said the IMF now sees global growth slowing only slightly this year and next, with July forecasts of 3.0% for 2025 and 3.1% for 2026【749143521955538†L215-L223】. However, she noted that growth is projected around 3% over the medium term, well below the 3.7% pre‑pandemic forecast【749143521955538†L229-L233】.
The IMF chief warned that uncertainty remains exceptionally high, citing surging demand for gold as a safe‑haven asset; monetary gold holdings now exceed 20% of world official reserves【749143521955538†L238-L241】. She added that U.S. tariff shocks have been less severe than initially announced but could still inflate prices, and she cautioned that high market valuations could reverse sharply【749143521955538†L243-L256】.
Georgieva urged countries to boost private‑sector productivity, consolidate fiscal spending and tackle imbalances to rebuild buffers, noting that global public debt could exceed 100% of GDP by 2029【749143521955538†L260-L267】.