Global Economy's Resilience Amidst Turbulence: IMF's Cautionary Forecast
IMF Managing Director Kristalina Georgieva notes global economy's resilience amidst numerous shocks, forecasting slight growth slowdowns. Despite risks, policies and financial conditions have helped economies like the U.S. avoid recession. Concerns remain about high uncertainty and global public debt projected to exceed 100% of GDP by 2029.
The global economy has demonstrated resilience despite facing multiple economic shocks, according to the International Monetary Fund's chief, Kristalina Georgieva. Speaking at the Milken Institute, Georgieva noted a slight slowing in growth forecasts for 2025 and 2026, though the U.S. has managed to circumvent recession fears.
The IMF's revised outlook shows global growth hovering around 3% over the medium term, amid increased undercurrents of economic and social challenges. Uncertainty remains high, with a notable surge in demand for gold, a traditional safe haven, as cautious investors navigate volatile waters.
Georgieva urged nations to improve growth through enhanced private-sector productivity, fiscal consolidation, and necessary reforms. With global public debt poised to surpass 100% of GDP by 2029, she emphasized the importance of strong financial oversight and international cooperation in sectors like trade and governance.
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