Global Economy Stands Resilient Amid Multiple Shocks, Says IMF Chief
IMF Managing Director Kristalina Georgieva reports that the world economy remains resilient despite various challenges and a forecasted slight slowdown in growth. Emphasizing fiscal prudence, she warns about the risks of market fluctuations, urging countries to enhance productivity, consolidate spending, and reduce debt levels.
Despite facing multiple shocks, the global economy has shown remarkable resilience, International Monetary Fund's Managing Director Kristalina Georgieva announced on Wednesday. She forecasted a slight slowdown in global economic growth for this year and 2026, emphasizing that recent U.S. economic data indicate a softening rather than a recession, defying earlier concerns.
Georgieva, speaking at the Milken Institute event in Washington, highlighted how better policies, adaptable private sectors, and supportive financial conditions have bolstered U.S. and global economies. Despite prevailing uncertainties and lower-than-desired growth forecasts, she stressed that significant economic risks and volatility still exist, particularly with artificial intelligence reshaping industries worldwide.
Addressing global economic vulnerabilities, Georgieva underscored the need for countries to increase private-sector productivity, reduce debt, and balance current account imbalances. Encouraging structural economic reforms, she warned about the potential impact of market fluctuations resembling past crises and urged nations to prepare for financial stability challenges ahead.
(With inputs from agencies.)
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