By Ayomide Otitoju
The global economy is performing better than anticipated despite facing prolonged uncertainty and subdued medium-term growth prospects, according to International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
Speaking to reporters in Washington on Wednesday ahead of the IMF and World Bank Annual Meetings, Georgieva said the world economy is doing “better than feared, but worse than we need.” She noted that global growth is expected to slow “only slightly this year and next,” supported by stronger-than-expected performance in the United States and several advanced and emerging economies.
“All signs point to a world economy that has generally withstood acute strains from multiple shocks,” Georgieva stated, citing improved policy frameworks, private sector adaptability, and supportive financial conditions. She added that while the world has so far avoided a full-scale trade war, the impact of recent tariffs “is still to unfold.”
The IMF projects global growth to hover around 3 percent over the medium term—below the pre-pandemic average of 3.7 percent. Georgieva urged countries to implement policies that “durably lift output,” rebuild fiscal buffers, and address excessive trade imbalances.
The Fund’s recommendations vary by region. In Asia, Georgieva advised deepening intra-regional trade and strengthening the services sector, measures that could increase long-term output by up to 1.8 percent. For Africa, she encouraged “business-friendly reforms” and continued development of the African Continental Free Trade Area, which could raise real GDP per capita by more than 10 percent.
Turning to Europe, Georgieva urged the European Union to strengthen competition by appointing a “single market czar” to lead reforms and deepen integration in financial services and energy. “Complete your project, and catch up with the private sector dynamism of the US,” she said.
She also called on the United States to address its widening fiscal deficit and encourage household savings, while urging China to advance fiscal reforms that promote private consumption and reduce reliance on industrial policy.
Georgieva’s remarks set the tone for next week’s high-level discussions in Washington, where global trade tensions and economic resilience are expected to dominate the agenda.
