IMF chief says economy has shown resilience

The head of the International Monetary Fund said the global economy showed resilience to an initial wave of trade disruptions, but she warned against complacency because financial markets and growth can sour quickly without prudent policies.

- By JORGELINA DO ROSARIO

KRISTALINA GEORGIEVA, managing director of the IMF, warns against complacency in the economy.

(ARWEN CLEMANS Bloomberg)

Speaking ahead of the IMF and World Bank’sannu-al meetings next week in Washington, Managing Director Kristalina Georgieva said that “all signs point toa world economy that has generally withstood acute strains from multiple shocks.”

Forecasts for recessions earlier this year have not proved true, she said, and global growth will slow slightly in 2025 and 2026. Many economies have performed “better than feared, but worse than weneed,” she added.

“The world has avoided a tit-for-tat slide into trade war —so far,” Georgieva said in the text of a speech in the US. capital. “But openness has nonetheless taken a big hit.”

With China “decelerating steadily,” medium-term growth rates are now about 3% compared with 3.7% before the COVID-19 pandemic.