IMF’s Georgieva Warns on Sluggish Global Recovery, Urges Policy Action Amid Divergent Growth Paths

Updated: April 17, 2025 21:10

Image Source: Reuters

Addressing the world’s policymakers and financial leaders, International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivered a sobering assessment of the global economy, highlighting “sluggish and uneven recovery” and calling for coordinated policy action to tackle rising risks and ensure inclusive growth.

Key Highlights:

Subdued Global Growth: Georgieva cautioned that global growth remains below historical averages, with advanced economies stabilizing but key emerging markets lagging. She cited persistent inflation, elevated interest rates, and geopolitical tensions as major headwinds.
Divergent Paths: The IMF chief noted widening gaps between economies, with some countries rebounding strongly while others struggle with debt, capital outflows, or weak productivity. “The world is on a two-speed recovery,” Georgieva remarked, urging greater international cooperation.
Policy Imperatives: Georgieva called for targeted fiscal support in the hardest-hit sectors, investment in digital and green transitions, and continued vigilance on inflation. She stressed the need for central banks to communicate policy clearly and for governments to shore up financial stability.
Risks and Uncertainties: Increased trade tensions, supply chain vulnerabilities, and regional conflicts were singled out as risks that could further slow growth or trigger market volatility.

Leadership Insights:

“We cannot afford policy complacency. Bold, collaborative action is essential to build resilience and lay the groundwork for a more inclusive and sustainable global recovery,” Georgieva said.

Outlook:

The IMF’s message is clear: governments and central banks must remain agile and responsive to shocks, prioritize long-term reforms, and work together to steer the global economy onto a stronger, more equitable path.

Source: IMF spring meetings, Kristalina Georgieva’s remarks, April 17, 2025.

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