(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Oct 8 (KUNA) -- International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday world economy showed resilience more than expected, despite pressure caused by some shocks.
Georgieva made the statement in a speech during an activity at Milken Institute in Washington, in preparation for the annual meeting on October 13-18.
"Next week, as the world's finance ministers and central bank governors gather at our Annual Meetings, the most pressing questions will be about the global economic impact of these forces of transformation and the policy turbulence we are seeing," she said.
"When we met in April, many experts -not us- predicted a US recession in the near term, with negative spillovers to the rest of the world. Instead, the US economy as well as many other advanced and emerging markets, and some developing countries, have held up," she pointed out.
All signs point to a world economy that has generally withstood acute strains from multiple shocks, Georgieva noted.
She attributed this resilience for four reasons; improved policy fundamentals, private sector adaptability, less severe tariff outcomes than initially feared-for now, and supportive financial conditions - for as long as they hold.
"As our World Economic Outlook will explain next week, we see global growth slowing only slightly this year and next," she noted.
Global growth is forecast at roughly three percent over the medium term - down from 3.7 percent pre-pandemic.
Georgieva said that global growth patterns have been changing over the years, notably with China decelerating steadily, while India develops into a key growth engine.
"Let me now turn to fiscal affairs, starting with the sobering reality that global public debt is projected to exceed 100 percent of GDP by 2029, led by advanced and emerging market economies."
Georgieva warned that rising debt inflates interest payments, exerts upward pressure on borrowing costs, constrains other spending, and reduces governments' ability to cushion shocks. (end)
rsr

MENAFN08102025000071011013ID1110170068