IMF Managing Director: Global economy better than expected, uncertainty becomes new normal

International Monetary Fund (IMF) Managing Director Georgieva said in Washington on the 16th local time that the global economy has performed better than expected, but has not reached the "required level", and uncertainty has become the new normal.

On the same day, Georgieva held a press conference during the IMF and World Bank autumn annual meetings and released the latest issue of the Global Policy Agenda. Georgieva stated that the latest World Economic Outlook report shows that global economic growth is generally stable. The IMF expects global economic growth to be 3.2% this year, lower than last year's 3.3% growth rate and dropping to 3.1% next year.

Georgieva said that the current global economy is affected by multiple changes such as geopolitical tensions, technological changes, demographic shifts, and reshaping of trade relations, leading to increased uncertainty and reduced predictability of the global economy. In the current situation, the resilience of the global economy is mainly due to two aspects. Firstly, since the global financial crisis, most countries have strengthened their policy and institutional frameworks; Secondly, the private sector has shown a high degree of flexibility in pre importing, strengthening supply chains, and responding to uncertainty.

Georgieva pointed out that in order to enhance resilience, countries should unleash the growth potential of the private sector, rebuild fiscal space, reduce debt levels, and prevent financial risks. Countries with large surpluses should boost domestic demand more, reduce excessive dependence on industrial policies, and increase social security expenditures; Countries with large deficits should reduce their fiscal deficits and encourage private savings.

On the 14th, IMF released its latest World Economic Outlook report, which predicts that the global economy will grow by 3.2% by 2025, an increase of 0.2 percentage points from the forecast in July this year; In 2026, it is expected to grow by 3.1%, which is consistent with the forecast for July.

The IMF and World Bank autumn annual meetings will be held in Washington from October 13th to 18th.