IMF Chief Says Global Economy Better Than Feared

IMF Managing Director Kristalina Georgieva.

The global economy is performing better than feared, despite ongoing uncertainty and modest medium-term growth prospects, International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.

“The world economy is doing better than feared, but worse than we need,” Georgieva told reporters in Washington. She added that global growth is expected to slow only slightly this year and next, supported by stronger-than-expected conditions in the United States and some emerging and developing economies.

Her remarks came ahead of next week’s World Bank and IMF meetings of finance ministers and central bank governors, where trade issues are expected to dominate following U.S. tariff measures earlier this year.

Georgieva noted that the world has generally withstood multiple shocks, citing improved policy fundamentals, private sector adaptability, lower-than-expected tariffs, and supportive financial conditions. While the U.S. tariff rate has fallen from 23 percent in April to 17.5 percent, she cautioned that the full effects are yet to be seen.

The IMF still projects global growth at roughly 3 percent over the medium term—below the pre-pandemic average of 3.7 percent. Georgieva urged countries to take swift action to lift output, rebuild fiscal buffers, and address trade imbalances.

She called on Asia to deepen internal trade and financial access, on Africa to promote business-friendly reforms and expand the Continental Free Trade Area, and on Europe to strengthen single market integration. For the U.S. and China, she highlighted fiscal reforms and measures to boost private consumption.