Global Economy More Resilient Than Anticipated, Says IMF Chief

The Managing Director of the International Monetary Fund, Kristalina Georgieva, stated on Wednesday that the global economy has shown greater resilience than previously anticipated, despite facing intense pressures from a series of economic shocks. 

Her comments came during a speech at the Milken Institute in Washington, just days before the IMF and World Bank are set to release new global forecasts during their annual meetings in the U.S. capital.

Georgieva noted that the world economy is experiencing a slight slowdown in growth this year and next, but stressed that the overall economic environment has remained stable in the face of challenges. According to her, several major economies, including the United States, have avoided the recessions that experts feared just months ago, thanks to better policy responses, a more adaptable private sector, and softer-than-expected import tariffs.

“In our preview of the upcoming World Economic Outlook report, we are seeing a modest slowdown in global growth for this year and next,” Georgieva said. “Yet all indicators suggest that the global economy has, on the whole, held up against the severe pressures caused by multiple shocks.”

While the IMF forecasts global growth to hover around 3% in the medium term, this is still lower than the pre-COVID-19 average of 3.7%, Georgieva said. She warned, however, that global economic resilience has not been fully tested, particularly as new challenges continue to emerge.

Among those risks, Georgieva pointed to potential sharp corrections in equity markets, which could have a chilling effect on global growth — particularly in developing economies. The IMF also expects global public debt to surpass 100% of global GDP by 2029, driven largely by rising debt levels in both advanced and emerging markets.

The IMF is scheduled to release its latest World Economic Outlook on Tuesday during its joint annual meetings with the World Bank. In its most recent update last July, the Fund raised its global growth forecast for 2025 by 0.2 percentage points to 3%, and lifted the 2026 projection to 3.1%.

These meetings come at a pivotal moment for the global economy. Over the past several months, the economic landscape has been reshaped by a range of forces, including former U.S. President Donald Trump's aggressive tariff policies and immigration clampdown, as well as the rapid technological disruptions brought by artificial intelligence and shifting labor market dynamics.

Georgieva’s remarks underscore a cautious optimism within the IMF: while the world economy has managed to weather recent turbulence better than many had feared, structural risks remain. The global financial system, trade frameworks, and public debt sustainability will all be in sharp focus as global leaders gather next week to set the course for the coming year.