IMF chief: World economy better than expected, but risks remain
The head of the International Monetary Fund said on Wednesday that the global economy is performing better than expected, despite ongoing trade policy uncertainty.
The world economy is doing “better than feared, but worse than we need”, Kristalina Georgieva said in prepared remarks at the Milken Institute, News.Az reports citing foreign media.
Ms Georgieva, speaking before the IMF and World Bank Annual Meetings in Washington next week, said stronger-than-expected performances in the US economy and other advanced economies and emerging markets, and some developing economies have led the fund to forecast global growth will slow “only slightly this year and next”.
US President Donald Trump's sweeping tariff announcements are expected to dominate next week's meetings, which will be attended by the world's finance ministers and central bankers.
“All signs point to a world economy that has generally withstood acute strains from multiple shocks,” Ms Georgieva said, pointing to improved policy fundamentals, strength in the private sector, less-than-feared tariff outcomes and supportive financial conditions.
The IMF in July raised its global growth forecast by 0.2 percentage points to 3 per cent for this year, and 0.1 percentage point higher to 3.1 per cent for 2026. It is due to release its updated outlook on the world economy next week.
The IMF chief said the fund was forecasting global growth to be roughly 3 per cent over the medium term, below the 3.7 per cent forecast before the Covid-19 pandemic.
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