The world economy has proven more resilient than expected despite acute strains from multiple shocks, the head of the International Monetary Fund said on Wednesday, forecasting only a slight slowing of global growth this year and in 2026.
IMF Managing Director Kristalina Georgieva said recent economic data showed a softening in the U.S. economy, but it had dodged a recession feared by many experts just six months ago.
The U.S. economy and many others had held up, given better policies, a more adaptable private sector, less severe import tariffs than feared - at least for now - and supportive financial conditions, she told an event hosted by the Milken Institute in Washington.
"We see global growth slowing only slightly this year and next. All signs point to a world economy that has generally withstood acute strains from multiple shocks," Georgieva said in a preview of the IMF's upcoming World Economic Outlook to be released next Tuesday during the annual meetings of the IMF and the World Bank.
In July, the IMF raised its global growth forecast by 0.2 percentage point to 3.0% for 2025 and by 0.1 percentage point to 3.1% for 2026.
Georgieva told Reuters in an interview the fresh outlook would reflect a small downward revision from the 3.2% growth forecast last October, but gave no exact numbers.
"What we are seeing is demonstrable resilience in the world," she said. "But we are also saying it is a time of exceptional uncertainty and downside risks are still dominating the forecast. So watch it, don't get too comfortable."
Next week's gathering takes place at a time when President Donald Trump has upended global trade with steep tariffs and cracked down on immigration, and artificial intelligence is rapidly transforming technology and the outlook for labor.
The world economy is doing "better than feared, but worse than needed," Georgieva said in her speech, noting the IMF was forecasting global growth of roughly 3% over the medium-term, well below the 3.7% forecast before the COVID-19 pandemic.
Source: Reuters