International Monetary Fund (IMF) Managing Director Kristalina Georgieva has noted that the world is undergoing profound shifts in geopolitics, trade policy, technology, and demographics. These shifts are converging to create enormous uncertainty. Fortunately, global growth has held up remarkably well amid these changes. But this global resilience will continue to be tested in the months and years to come.

The world economy is projected to grow 3.3 percent this year and 3.2 percent next year, supported by the agility of the private sector, accommodative financial conditions, and sustained reforms, especially in emerging markets. Inflation is expected to fall to 3.8 percent this year and 3.4 percent by 2027, helped by softer demand and lower energy prices.

However, daunting risks remain, she noted further. Geopolitical tensions are exacerbating uncertainty, trade tensions and protectionism dent prospects for investment and growth. AI-driven productivity gains may prove overly optimistic. Large and rising debts in many countries are projected to reach unprecedented levels in the coming years. Fiscal strains, especially in advanced economies, could raise global borrowing costs.

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