• The global economy is performing better than initially feared, according to IMF Managing Director Kristalina Georgieva.
• Global growth is forecast to slow slightly to around 3% this year and next, aided by strong conditions in the U.S. and other regions.
• Concerns remain over ongoing trade tensions and tariffs imposed by the U.S. impacting long-term growth.
• Georgieva calls for countries to implement structural reforms to enhance competitiveness and safeguard economic stability.

The global economy is showing more resilience than expected despite recent challenges, according to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). She stated that while the world economy is doing "better than feared, but worse than we need," it is still on track for only a slight slowdown in growth, projected to be about 3% for this year and the next. This forecast is underpinned by better-than-expected conditions in the United States and other advanced economies, as well as emerging markets, according to Reuters and South China Morning Post.

However, the IMF chief cautioned that this economic stability may not last long, highlighting that uncertainty has become the "new normal." Georgieva specifically pointed out that the full effects of recent U.S. tariffs are yet to unfold, emphasizing that this aspect will be a critical topic during the upcoming IMF and World Bank meetings. Concerns about inflation could arise as U.S. companies might gradually pass on increased costs from tariffs to consumers, as discussed in reports by India Times and Al Jazeera.

Georgieva reiterated that "all signs point to a world economy that has generally withstood acute strains from multiple shocks," indicating improved policy fundamentals and the adaptability of the private sector. Still, the IMF forecasts a long-term growth rate lower than the pre-pandemic level of 3.7%, reflecting worries about global economic patterns, particularly with China’s ongoing deceleration and India emerging as a key driver for growth, according to The Jakarta Post and Los Angeles Times.

To counter the potential downturns, Georgieva advises countries to act quickly to rebuild fiscal buffers, address trade imbalances, and implement business-friendly reforms. She particularly mentioned the importance of strengthening service sectors in Asian economies and pursuing greater integration within the EU to boost competition and efficiency. In Europe, she proposed appointing a "single market czar" to facilitate necessary economic reforms, highlighting that competing with the U.S. private sector's dynamism should be a top priority, as suggested by Channel News Asia and India Times.