This is as global uncertainty deepens amid trade disruptions, technological shifts, and demographic divides.
Speaking at the IMF–World Bank Annual Meetings, Georgieva said that while anxiety is rising worldwide due to rapid changes in geopolitics, trade, and technology, the global economy has so far remained “reasonably resilient.”
She highlighted that world growth is projected to slow only slightly, from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, despite increased tariff barriers, tighter financial markets, and geopolitical tensions.
“From technology to geopolitics to trade, change is unsettling,” Georgieva said. “Yet despite sweeping policy shifts and many expert predictions, the global economy has held up.”
She credited the private sector’s adaptability and a surge in artificial intelligence (AI) investment for supporting growth. However, she cautioned against complacency, noting that financial markets have a history of overestimating new technologies before corrections occur.
Georgieva called for stronger financial oversight to guard against excessive risk-taking, deeper regional integration to unlock growth potential, and responsible AI adoption to boost productivity while protecting jobs.
She also outlined three key priorities for governments: repairing public finances, rebalancing domestic and external accounts, and lifting long-term growth through structural reforms.
“Fiscal consolidation can release resources to support private sector-led growth,” she said, warning that waiting for faster growth “to come to the rescue” was not an option.
Addressing the growing divide between ageing and youthful populations across regions, Georgieva stressed the need for job creation and inclusive growth, especially in Africa, where population growth remains strong.
On trade, she welcomed the restraint shown by most countries in avoiding retaliatory tariffs, noting that 72% of world trade continues under most-favoured-nation terms.
“The world trading system that delivered so much for so many is being shaken to its core,” she said. “But trade is not a zero-sum game.”
Georgieva concluded by reaffirming the IMF’s commitment to fiscal discipline and innovation, noting that despite expanding responsibilities, the Fund’s administrative budget remains roughly the same as two decades ago.
–IMF/ChannelAfrica–
