The International Monetary Fund, IMF,says the global economy continues to show strong resilience despite rising uncertainty across multiple fronts.
Kristalina Georgieva, the IMF Managing Director, shared this insight on Thursday in Washington, D.C., during her presentation of the Global Policy Agenda at the World Bank Group Annual Meetings.
Georgieva said the global economy had “improved tremendously,” even as challenges persist in trade, technology, and geopolitical relations.
“Gold values, for example, continue to reflect global uncertainty and the transformations shaping the world from technology and demography to politics and trade,” she said.
The IMF chief credited two key factors for the global economy’s resilience:
Stronger policy fundamentals, as many countries especially emerging markets have pursued disciplined fiscal and institutional reforms since the global financial crisis.
Private sector adaptability, as businesses have found creative ways to manage supply chain disruptions, shift trade patterns, and navigate uncertainty.
“These efforts are paying off,” she said. “The private sector has shown remarkable agility in handling economic shocks and structural shifts.”
Despite this progress, Georgieva cautioned that the medium-term growth outlook remains weak, with public debt near record highs and global imbalances widening.
“The global economy is becoming less predictable, and people feel it,” she said. “Citizens everywhere are anxious, demanding better opportunities and fairer systems.”
Georgieva urged governments to unlock private sector potential to drive job creation and improve livelihoods. She advised member nations to reform domestic regulations, foster innovation, and support entrepreneurship through stable institutions and free, fair markets.
“Countries must secure sound macroeconomic fundamentals to navigate this turbulent world,” she said. “That means rebuilding fiscal space, reducing debt, and preserving financial stability.”
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She called on nations with large surpluses, like China, to boost domestic demand by increasing social spending rather than expanding industrial policies. Similarly, she said countries with deficits, including the United States, must reduce fiscal imbalances and promote private savings.
The IMF, she said, is pursuing several major initiatives to support member countries, including:
A comprehensive surveillance review to enhance global economic monitoring;
A review of loan conditionality to improve programme design;
Efforts to replenish the Catastrophic Containment and Relief Trust, which provided crucial support to low-income nations during the COVID-19 pandemic;
Ongoing work on the Global Sovereign Debt Roundtable to improve coordination between creditors and debtors; and
Updates to the debt sustainability framework for low-income countries.
Georgieva reaffirmed that uncertainty would remain a defining feature of the global economy but insisted it also presented opportunities.
“Change is unstoppable,” she said. “With every transformation comes opportunity. The IMF will stand by our members as they adapt, providing country-specific advice and financial support where needed.”
She concluded by calling for greater global cooperation, saying that the world could only achieve shared prosperity through “discipline, resilience, and reform.
