IMF Warns: Uncertainty has Become a Permanent Feature of the Global Economy
The global economy has entered a phase of continuous uncertainty marked by unprecedented geopolitical, technological, and demographic fluctuations, Kristalina Georgieva, the Managing Director of the International Monetary Fund, warned on Wednesday in Washington.
During her opening speech ahead of the upcoming annual meetings of the IMF and the World Bank scheduled for next week, Georgieva pointed out that some regions are experiencing population growth while others are declining, all under increasing environmental pressures. She stated, “Uncertainty has become the new norm and it isn’t going away anytime soon,” clarifying that the global economy “is performing better than we feared, but less than it should.”
Georgieva noted that global growth is expected to decline slightly this year and next, reflecting the economy’s resilience in the face of recent shocks. This resilience is attributed to four main factors: better public policies, private sector flexibility, less restrictive tariffs than expected, and still favorable financial conditions.
However, this strength remains fragile. Georgieva highlighted concerning indicators, such as the significant increase in global demand for gold, which now accounts for more than one-fifth of official reserves.
In this context, Georgieva urged governments to double their efforts to boost growth, restore public finances, and correct economic imbalances. She emphasized, “This is not the time to harm ourselves, but to get our house in order.”
She also warned of rising global public debt, which is expected to exceed 100% of GDP by 2029, thereby increasing interest costs and reducing countries’ ability to respond to crises.
Georgieva concluded by calling for coordinated action and enhanced cooperation among nations, asserting that strong institutions, sound governance, and balanced policies are the only way to strengthen resilience and accelerate global growth.
